IMF Reveals Why Only 40 Countries Are Permitted Issue Digital Currencies
The deployment of Bitcoin and other bulls as means of the transaction has been increasing because more countries are getting a deeper knowledge of how to get the best out of the crypto industry. Many nations of the world have discovered the importance of dealing with cryptocurrencies, and they are reportedly willing to adopt it later in the year fully.
Financial institutions and banking sectors of some developed countries are more than ready to introduce a central bank digital currency (CBDC), which will oversee and monitor the transaction and trading of Bitcoin and other Altcoins. Unfortunately, their plans may not be fully executed as a result of the IMF’s latest statement.
Most central banks in the world didn’t have a legal framework to issue a digital currency
The International Monetary Fund (IMF) isn’t going to permit many of its member nations to create the central bank digital currency (CBDC) as a result of their ineligible status. In a statement released by the organization, the existing legal principle guiding all its members (countries) doesn’t give room for higher participation in the digital world.
It is revealed via the blog post that only a few countries are being given the go-ahead to create the digital asset bank. The post also suggested that 80% of central banks in the world didn’t have a legal framework to issue a digital currency in their respective countries.
On the contrary, the IMF further explained that only 40 of its member nations have the requirement and legal permission to engage in the digital asset issuance. It stressed that central banks with the capacity and legal permission to issue any digital asset need to make the coins accessible to everyone within the geographical area, challenging to achieve. Every cryptocurrency enthusiast is expected to have their digital technology such as a computer system, active internet connection, and a smartphone for a smooth trading experience.
IMF predicts a better future for the crypto industry
Hence, many underdeveloped and developing countries weren’t permitted by the IMF to adopt the assets’ full usage as many of their citizens would likely miss out. Though the monetary body admits the proposed creation of the CBDC will improve the world’s banking and trading system, it believes many countries are not fit to be given a chance to take such measures. Last year, we reported that the International Monetary Fund predicted a very bright future for the crypto space if the government of every nation does what is required before adopting it.
In the report published three months ago, competent political bodies must have a productive discussion with the movers and shakers of the crypto world to make policies that will improve the industry without harming other finance sectors.
Meanwhile, China, Sweden, Saudi Arabia, and the United Arab Emirates are set to take a leading role in the industry this year. As mentioned earlier, the countries are tipped to take the crypto space to a whole new height by encouraging their citizens to invest in Bitcoin and other cryptocurrencies for more and higher benefits.