The International Monetary Fund (IMF) and the World Bank together have launched a private blockchain dubbed as quasi-cryptocurrency. The news was announced on April 12 by the media the Financial Times [FT].
According to the reports from Financial Times, the asset called “Learning Coin” will be reachable only within the International Monetary Fund and World Bank. Report highlights that the coin has no monetary value and thus is not a genuine cryptocurrency.
According to the Financial Times, the “Learning Coin” was introduced in order to bring advancements in the understanding of the technologies underlying crypto assets. Its app will act as a center where blogs, videos, research data and presentations are stored.
During the test, staffs of the World Bank and International Monetary Fund can earn coins for attaining certain educational milestones. The institutions will enable them to redeem the assets earned for some reward or bonus. I will enable staffs to educate themselves on how coins can be used in real life.
According to the IMF, the regulators, banks and Financial Institutions across the globe have to aware of the emerging and rapidly developing crypto technologies.
The Financial Times quotes the IMF as saying,
“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.”
Reportedly, after completing the test the World Bank and IMF might utilize blockchain to issue smart contracts, tackle money laundering and boost the overall level of transparency.
In April 2019, IMF managing director Christine Lagarde said that the blockchain innovators are creating positive effect on the traditional financial world. She also highlighted that the potentials and opportunities of blockchain-based technologies and assets is encouraged by regulators and central banks, which recognize its positive impact.
In March the World Bank official expressed a more criticized point of view on blockchain technology. Speaking at the 20th Annual Conference on Land and Poverty in Washington, D.C. Aanchal Anand, a Land Administration Specialist in the bank’s Global Land and Geospatial Unit, warned against the phenomenon known as “blockchain hype,” which causes false expectations.