The International Monetary Fund warns: Central banks should reconsider reserve allocation, and digital assets cannot be ignored

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The International Monetary Fund warns: Central banks should reconsider reserve allocation, and digital assets cannot be ignored

Cryptocurrencies such as Bitcoin are impacting the US dollar’s status as a world currency. Recently, the International Monetary Fund warned that central banks should reconsider their reserve allocation. Among them is a point of concern: the International Monetary Fund believes that the outbreak of the new crown epidemic has promoted the rapid growth of financial technology, and the most notable technology is cryptocurrency.

Libra is well understood, because the epidemic is no longer going offline, and the impact of the epidemic is similar to the Fed’s simple and rude money printing method to hedge trade risks: on the one hand, it makes the dollar inflation appear and threatens the dollar’s world currency status. ; On the other hand, not all online transactions in all countries are as convenient as Alipay and WeChat in our country. What should I do if the epidemic comes? Cryptocurrency has become a ready-made online payment method. Therefore, the impact of cryptocurrency on sovereign currencies is not small.

Many central banks in Libra are now aware of the threat of privately issued digital currencies. For example, Facebook’s Diem was publicly dissed by the President of the European Central Bank and others, thinking it would pose a financial threat. And Facebook had to change the name of Libra to Diem also revealed the obstacles it faced in the process of debut. At the same time, some central banks are trying to counter this threat by issuing their own digital currencies. An IMF blogger stated: “The potential competition from private issuers such as Diem (Facebook’s blockchain-based payment system) has stimulated major central banks to accelerate their work on central bank digital currencies and cross-border payments.” The IMF The round of warnings actually made all countries pay more attention to the development of digital currencies and encrypted currencies. Because the wave has arrived, no one can refuse.

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