Private blockchain networks seem to be expanding among banking and financial institutions. This time, the International Monetary Fund (IMF) has announced a new blockchain private network that aims at providing them more knowledge about blockchain technology and virtual currencies.
IMF Creates New Private Blockchain Network
A few months ago, JP Morgan Chase launched a new virtual currency called JPM Coin. This virtual currency is expected to be working as a digital asset for settlements among customers of the bank. In the past, Jamie Dimon, the CEO of the financial institution, criticized Bitcoin (BTC) and called it a fraud.
The new project created by the IMF is called Learning Coin and it will be used to learn more about the cryptocurrency and blockchain markets. Nonetheless, the digital asset will be used by two institutions, the IMF and the World Bank. The International Monetary Fund explained that the virtual currency will allow the staff to have a better understanding of the goods things, smart contracts and transparency of this new technology.
For example, there are some proposals that are starting to be discussed to use the Learning Coin. Employees could be rewarded in Learning Coin and it might be possible for individuals to redeem these virtual currencies for some kind of rewards later.
A few days ago, we wrote at UseTheBitcoin that Christine Lagarde mentioned that digital currencies are shaking the system.
On the matter, she commented:
“I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto assets, currencies, or whatever – and it’s far from the Bitcoins that we used to talk about a year ago – that is clearly shaking the system.”
At the same time, the financial institution is also encouraging countries to regulate the space and create the necessary legal framework for these technologies to expand. With the new Learning Coin, these two institutions could start to understand how to better regulate the market without affecting the daily use of digital assets. They are also trying to make companies accountable for the products and virtual currencies that they release to the market.
The International Monetary Fund has also been analysing the role that Central Bank Digital Currencies (CBDCs) could eventually play in the future. There were several central banks that shared their intentions to start exploring issuing CBDCs to the market. Nonetheless, there are no live CBDC projects currently being developed.