An IMF executive discussed digital payments and the future of finance
According to Kristalina Georgieva, managing director of the International Monetary Fund, digital finance will affect all sectors, including the craft sector.
The ongoing transition to digital finance is likely to affect all sectors, and craftsmen are no exception. According to Kristalina Georgieva, managing director of Bitcoin Evolution the International Monetary Fund, whether or not these workers can access digital money will depend on a number of factors.
Georgieva said at the BlockShow conference on Friday:
„The digital future of the craftsman will be based on four pillars: private sector innovation, public sector involvement, the regulatory and legal framework, and international cooperation.
But how do online payments and finance affect artisans? Digital transactions and capabilities have the potential to accelerate the flow of money. Georgieva noted that if a trader lost his job, the authorities could transfer unemployment benefits more efficiently. Digital finance also provides access to different forms of payments and loans, including across borders. According to the IMF executive, therefore, „it is no longer necessary to be a large company to compete globally“.
The private sector has been crucial to the development of the crypto sector. While some countries are rushing to issue their own CBDCs, the Director of the U.S. Office of the Comptroller of the Currency, Brain Brooks, recently highlighted the efforts of the private sector, particularly with regard to the enormous progress made by stablecoins.
„Private sector innovation has been helpful to many people. Individuals are able to best assess the needs of people and businesses, to provide the wide range of products and services that consumers want, and to take the necessary risks for innovation“.
US Congressman Bill Foster mentioned the potential role
The IMF’s senior executive looks to the public sector „to provide a verifiable digital identification system, communication infrastructure, money and other needs“. At an event in October, US Congressman Bill Foster mentioned the potential role of the blockchain in a verifiable digital identification system, a topic that has been much discussed in the crypto world for several years.
Georgieva also referred to the remarkable developments of the CBDC, asking: „Will a digital version of banknotes and coins be introduced? Many countries are considering this very possibility“.
Although the form of money issued by the central bank may change, the function remains the same. It should nevertheless preserve the stability of the other forms of currency, while allowing their evolution and diversity.
Finally, Georgieva discussed the importance of a clear regulatory framework and international cooperation. The crypto sector continues to suffer the impact of regulation (or, in some cases, its lack), but it must be said that some grey areas are beginning to disappear.