IMF Worries Digital Currency Could Erode Monetary Control, Which Is Exactly What Consumers Want

The International Monetary Fund (IMF) and central banks are fretting over what could happen if enough consumers use digital currencies instead of national currencies. Some of the controversy is of their own making, as central banks consider issuing central bank digital currencies (CBDC) to combat the rise of private cybercurrency including Facebook’s proposed libra.

The IMF said digital currencies could make illegal activity easier, as well as cash flows across borders, and could reduce the power of central banks and nations to control monetary and fiscal policy.

But what the central banks and IMF call bugs, consumers call features. Individuals trading national currencies for digital currencies specifically are trying to get out from under the control of central banks. They don’t want governments and bureaucrats to determine the value of their holdings, and they like the idea of being able to send money anywhere they want, any time they want, without limit or oversight.

Given that central banks also control monetary policy and national currencies, it’s hard to see how CBDCs will gain much traction. They might allow easier capital transfers, but they would still need extensive government oversight which would eventually make them the same as bank transfers.

Consumers want less government intervention, not just a different kind.

See Comments (2)

Leave a Reply


Your email address will not be published. Required fields are marked *

*

Comments (2)


  1. Guy Taylor
    Reply

    If cash is eliminated, it won’t be long until the banks charge you interest to keep your money in the bank. You won’t be able to get paid, receive money or even be able to make a simple transaction. No privacy on any purchases. More rights lost including electronic theft and fraud.

  2. Guy Taylor
    Reply

    If cash is eliminated, it won’t be long until the banks charge you interest to keep your money in the bank. You won’t be able to get paid, receive money or even be able to make a simple transaction without a bank account. No privacy on any purchases. More rights lost including electronic theft and fraud.

Do NOT follow this link or you will be banned from the site!