The IMF recommended that countries focus on addressing the drivers of crypto demand and unmet digital payment needs in a post.
Banning crypto ‘may not be effective in the long run’ — IMF
After proposing a single ledger CBDC payment system, the International Monetary Fund reported on the regulation and use of digital currencies in Latin America and the Caribbean.
Central Banks Propose CBDC, Stablecoin Standards With Amazon, Grab Running Trials
The Monetary Authority of Singapore (MAS), in collaboration with the IMF and other central banks, is proposing common conditions for retail payments with digital money on a distributed ledger.
BIS releases unified-ledger proposal for cross-border, tokenized asset transactions
Like the IMF’s single-ledger proposal released a day earlier, BIS’ unified ledger uses familiar concepts, such as tokenization, without the blockchain.
IMF envisions ‘new class’ of cross-border payment platform with single ledger
The XC platform could operate domestically using tokenized assets, including deposits, with or without CBDCs.
IMF Official Presents Blueprint for Cross-Border CBDCs
The international organization wants to help cut the cost of cross-border transactions, without abandoning compliance checks or capital controls.
India’s RBI Intends to Push G-20 to Focus on Crypto’s Macro Risks
India’s central bank is trying to expand the global narrative around cryptocurrencies beyond “financial stability and integrity to macro-financial and cross-sectoral implications and risks of crypto-assets.
IMF optimism in Central African Republic, despite Bitcoin adoption
The International Monetary Fund projects 2.2% GDP growth and manageable debt, but warns of liquidity risks.
IMF sees room for eNaira improvement in first year assessment
The world’s second-ever CBDC has yet to reach 1% of Nigeria’s population, according to the IMF assessment.
Pakistani finance minister says crypto will never be legal because of FATF
Pakistan was taken off the FATF gray list in October, and it has good reasons to want to stay in international good graces.
Zimbabwe Sells Millions of Gold-backed Crypto Tokens, Shrugs off IMF Advice
Zimbabwe ignored the International Monetary Fund’s (IMF) caution and engaged in the sale of its gold-backed crypto tokens. As a result, the Reserve Bank of Zimbabwe recorded huge success selling its gold-backed digital assets worth 14 billion in its native currency or 39 million in United States dollars.
Zimbabwe’s Sale Of Gold-Backed Digital Tokens Attracts Mass Interest
According to an announcement, Zimbabwe’s central bank acknowledged receiving 135 applications for buying its gold-backed crypto assets. While the cumulative application for the newly launched tokens is about 14.07 billion Zimbabwean dollars.
Related Reading: Bitcoin Tweets Surpass Dogecoin Despite Meme Coin Craze
The Zimbabwean apex bank launched the asset in April and made it available for purchase from May 8 to May 12. The digital tokens were backed by 139.57 kilograms of gold, and investors can store them on e-gold cards or electronic gold wallets.
Further, the bank set the token’s minimum vesting period of 180 days. Also, it set minimum purchasing amount levels of $10 and $5,000 for individuals and companies, respectively.
According to XE.com, the official exchange rate for the Zimbabwean dollar is 362 ZWD to 1 USD. However, the actual value is higher on the street.
The Zimbabwean central bank made this bold step with its gold-backed digital as part of its plans to stabilize the country’s economy. It plans to reverse the declining value of its fiat currency against the USD.
Following the success of the initial sales of the digital token, the central bank is gearing toward another sale round. The bank requested that interested investors submit applications by May 18 for settlement.
The Reserve Bank of Zimbabwe governor, Dr. John Mangudya, explained the importance of the newly launched tokens through a local news outlet.
Mangudya mentioned that issuing gold-backed assets will expand the availability of value-preserving instruments in the economy. Also, the tokens will improve the public’s access to and use of investment products.
IMF Warned Zimbabwe Against Gold-Backed Crypto Tokens
The move to sell its gold-back crypto tokens came shortly after the International Monetary Fund (IMF) cautioned it. According to a report from Bloomberg, the IMF warned Zimbabwe against its plan with gold-backed crypto assets.
An IMF spokesperson stated that the country should carefully assess to ascertain that the token’s benefits outweigh the potential risks. Some highlighted risks include legal and operational risks, macroeconomic and financial stability risks, and governance risks.
The IMF also advised Zimbabwe to take alternative measures to stabilize its economy, such as advancing its foreign exchange market.
Also, it suggested that the country could explore tight monetary policies and the removal of exchange rates on transactions for banks, authorized financial dealers, and businesses. However, time will tell if IMF’s caution against risks will become a reality.
Featured image from Pixabay and chart from Tradingview.com
G-7 Finance Ministers Discuss Crypto Regulation Ahead of Japan Summit Next Week
Representatives for the seven advanced economies signaled a commitment to following norms set by standard-setters FSB and IMF on crypto and central bank digital currencies.
A recession is coming — Here’s how it’s fueling Bitcoin
Cointelegraph analyst and writer Marcel Pechman explains how a potential looming recession might be causing Bitcoin’s price to rise.
IMF to publish CBDC handbook in response to increasing demand for guidance
The handbook will be descriptive and informational, while the IMF offers advice tailored to specific, prioritized countries.
G-7 Will Focus on Helping Developing Nations Introduce CBDCs
The Group of Seven (G-7) advanced nations will prioritize considering how it can better help developing countries introduce their central bank digital currencies (CBDCs).
IMF reiterates call for crypto regulation after the ecosystem’s ‘rough year’
According to the IMF, regulations should include with “strict prudential requirements” for stablecoin issuers following the depegging of USD Coin and Dai.
Stablecoin Issuers, Conglomerates Targeted by IMF After Crypto’s ‘Rough Year’
FTX and collapses like Signature, Silvergate and Silicon Valley Bank show need for stronger consumer protection, governance norms, the International Monetary Fund said in its Global Financial Stability Report
Bitcoin derivatives favor further BTC price rally toward $30K
Bitcoin’s price might have held near $28,000 but the absence of shorts using margin and futures markers is a bullish indicator.
Malaysia enlists China to help end USD dependence for trade
More proposals and currency concepts are emerging as Asia ramps up its efforts to distance itself from U.S. dollar hegemony.
IMF examines CBDC design in context of Islamic banking, finds some risks magnified
A central bank digital currency’s liquidity and foreign exchange would work differently Islamic law from what might be expected.