Official, private digital currencies can coexist, say IMF experts

The blog suggests a central bank digital currency may be designed to encourage the private sector to innovate on top of it

bitcoin, cryptocurrency, digital

Keeping pace with technology change, user needs, and private-sector competition will be challenging for central banks.

Indivjal Dhasmana New Delhi
At a time when India is contemplating a ban on private cryptocurrencies, a blog by two International Monetary Fund (IMF) experts may provide a piece of advice to the government. The title of the blog — Public and Private Money Can Coexist in the Digital Age — says it all.

The blog, written by Tobias Adrian and Tommaso Mancini-Griffoli — both working at IMF’s monetary and capital markets department — says today’s world is characterised by a dual monetary system, involving privately-issued money by banks of all types, telecom companies, or specialised payment providers, built upon a foundation of publicly-issued money by central banks.

“While not perfect, this system offers significant advantages, including innovation and product diversity, mostly provided by the private

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First Published: Feb 25 2021 | 7:07 PM IST

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