Keeping pace with technology change, user needs, and private-sector competition will be challenging for central banks.
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
First Published: Feb 25 2021 | 7:07 PM IST