IMF Actively Assessing Risks, Benefits From Digital Currency Developments - Spokesperson

The International Monetary Fund (IMF) is actively working with other multinational organizations to assess the potential benefits and risks from digital currencies, IMF spokesperson Gerry Rice told reporters on Thursday

WASHINGTON (UrduPoint News / Sputnik - 25th February, 2021) The International Monetary Fund (IMF) is actively working with other multinational organizations to assess the potential benefits and risks from digital currencies, IMF spokesperson Gerry Rice told reporters on Thursday.

"IMF is very engaged on this issue and analysis, surveillance and capacity development, and actively collaborating with other international bodies," Rice said during a virtual press briefing.

Rice explained that digital currencies continue to develop and pose risks and benefits for the global economy, which is why the IMF is following the situation very thoroughly, he said.

"Public and private digital currencies can reduce the cost of doing business, improve productivity and market integration. On the other hand, they can undermine funding, data privacy and cybersecurity," Rice said.

Speaking of future measures to contain the risks form digital currencies, Rice emphasized the necessity of forward looking, supervision and regulation.

"The microfinancial implications need to be managed, including to Currency substitution, financial stability and capital account restrictions," Rice said.