The phenomenon of digital money payments in the community is increasingly exploding. Apart from not having a form like paper money, which makes it easier to use, digital money also tends to be easy to transfer between countries. On the other hand, IMF gives advice on the risk of digital money.
This has also become positive in supporting the provision of assistance from rich countries to lower-class individuals in poor countries. However, there are also risks arising from direct transfers of digital money between these countries.
3 Important Points to Pay Attention
In response to the risk on digital money, the IMF Managing Director, Kristalina Georgieva, stated that there are several important points. Several points that governments around the world must do in minimizing the risks that can arise from this.
First, he reminded that this digital money must be a currency that is trusted by the public. He stated that there must be a definite legal umbrella regarding this digital money.
“First, new forms of money must remain trustworthy. They must protect consumers. It means be secure and anchored within a strong legal framework, and support financial integrity,” she said, Wednesday (14/4/2021).
The second is the health of the domestic economy. This must be done in order to protect the supply of digital money that is printed by public and private partnerships.
“Second, domestic economic and financial stability must be protected by carefully designed public-private partnerships. Which support the provision of digital money, including healthy competition,” said the woman from Bulgaria.
Third, namely control over monetary policy. This really needs to be done so that if there are several problems regarding digital money, the state has full power to take strategic policies that can be implemented immediately.
“Countries need to maintain control over monetary policy, financial conditions, openness of capital accounts and foreign exchange regimes,” he added.
Furthermore, he also stated that the IMF would be fully committed to ensuring that all countries in the world implement these points. The IMF will collaborate fully with all parties. Which including the Financial Stability Council, the Bank for International Settlements, the World Bank and industry players.
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