Two economic powerhouses of the world — the International Monetary Fund (IMF) and the World Bank — have reportedly launched a private cryptocurrency to study blockchain technologies and their real-world applications, said a recent report by Financial Times.
Called as “Learning Coin”, the new and private quasi-cryptocurrency project is for their staffs to understand how these popular digital assets works. The staff at the two agencies are now studying the goods and bads of digital distributed ledger technologies, such as smart contracts, transparency as well as money laundering.
With this, IMF and World Bank wants to explore “use-cases” of crypto asset powered by blockchain with aim of restricting distributed digital assets and centralize blockchain.
According to IMF, this new project will help people such as policymakers, legislators and economist to become abreast with the technology.
“The development of crypto-assets and distributed ledger technology is evolving rapidly, as is the amount of information (both neutral and vested) surrounding it. This is forcing central banks, regulators and financial institutions to recognize a growing knowledge gap between the legislators, policymakers, economists and the technology,” said IMF in a statement.
Late last year, Managing Director of IMF, Christine Lagarde, had urged central banks all over the world to consider issuing digital currencies to satisfy public policy goals related to financial inclusion, consumer protection, privacy and fraud prevention.
India’s central bank, Reserve Bank of India (RBI), is also said to working on a fiat digital currency called ‘Lakshmi’ coin, which would become an alternative to the Indian rupee for digital transactions, and unlike bitcoin which is a non-fiat digital currency, the new one will be fiat-cryptocurrency.
In February, American multinational investment bank JP Morgan launched first US bank-backed blockchain-based asset called JPM Coin, which is equivalent to 1 U.S. dollar.
Last December, it was reported that social network giant Facebook is also working on making its own cryptocurrency called ‘Stablecoin’ that will let users transfer money on WhatsApp messaging app, with India being thefirst remittances market Facebook will be focusing at.