Whatever may be the controversies attached to cryptocurrencies throughout the world, one has to admit that cryptocurrency and blockchain are next-gen technologies with tremendous use value. The same can be witnessed when two economic powerhouses of the world – the World Bank and the International Monetary Fund (IMF) have launched a private cryptocurrency to study blockchain and its real-world applications.
Termed as “Learning Coin”, the new quasi-cryptocurrency project is for their staffs to understand how these digital assets work. Using ‘Learning Coin’, World Bank’s and IMF’s staff will study the pros and cons of digital distributed ledger technologies including smart contracts, transparency as well as money laundering. Both financial institutions want to centralize blockchain and restrict distributed digital assets.
According to IMF, the project will help policymakers, legislators, governments and economist to understand the technology. Christine Lagarde, Managing Director of IMF urged central banks all over the world to consider using digital currencies to satisfy public policy goals related to financial inclusion, privacy, consumer protection and fraud prevention.
“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.
India’s central bank, RBI also reportedly is working on a fiat digital currency called “Lakshmi Coin” to make it an alternative to the Indian rupee for digital transaction. Unlike Bitcoin and other cryptocurrencies which are non-fiat in nature, the new Lakhsmi Coin will be a fiat-cryptocurrency. Fiat currency is legal tender whose value is backed by the government that issued it.
Earlier in February this year, JP Morgan, an American multinational investment bank launched the the first US Bank-backed blockchain-based asset called JPM Coin, which is equivalent to a dollar. Last year in December 2018, Facebook was reported to be working on its own cryptocurrency called ‘Stablecoin’ to let users transfer money on WhatsApp.