IMF and World Bank Greenlight Blockchain technology, A Glimmer of Hope!
According to cryptonews.com, in an attempt to make Blockchain technology more widespread among financial institutions, International Monetary Fund (IMF) and World Bank started experimenting a featured Blockchain.
Like the ledger developed by JPMorgan’s Quorum, it has limited access and using it entails getting permissions. However, the main difference between two is their application as what is developed by IMF will continue growing since it is a preliminary project for its staff to get engaged in crypto assets and its related technology and it surely will be widened in the future.
These kinds of events are going to have fruitful implications for the future of cryptocurrencies and Blockchain technology.
It might be a novel experience to be applied in financial institutions. On the other hand, because of its futuristic perspective, it will be a factor risk for other similar projects like JPM. However, what is the reason?
When you have the opportunity to entrust a credible institution like IMF, it will seem somehow unreasonable and inexcusable for anyone whether legal or real to prioritize any other lower-level financial institution. As a result, you might confront a condition of competition among megabanks to attract the customers to their product; i.e., their coin, due to their weakness to be the first choice of the clients when they compare them with such valid institutions.
What Is Their Ultimate Objective?
A purposeful collaboration between two impartial IMF and World Bank leads to absorbing the active figures to come to terms in using the Distributed Ledger Technology (DLT). It would be certain that using a common ledger creates more security and efficiency in international transactions beside an eye-catching feature which is high speed (luckily it can decrease to a nominal fraction of an hour). Among the other outcomes are getting rid of any intermediaries and making competition challenge for small institutions.
What Is the Advantage of This Project for the Banking System in Whole?
In the economy analysts’ point of view, the most instrumental outcome of such projects is the integration in the banking system; that is, the no-more-functional banking system will enjoy higher interoperability; no worry about spending precious time to exchange currencies.
Imagine a day you can do all your banking affairs only with a mobile phone and the internet, whether you have a bank account or not. Although it looks a little utopian, these kinds of projects will surely be followed to complete this worldwide vision.
Is There Any Impediment?
Predicting some problems with free open ledgers such as Bitcoin or regulated ledgers owned by the institutions whose activity is out of borders is the first which comes to the mind.
To sum up, what can be inferred from what is going on in this unpredictable and innovative world is that the anticipation of having more legitimized open DLT, more power in transaction settlements, its potential to be applied in the industry, and easier future exchange than what we see in fiat money can be what we call “predisposition to become a dominant banking technology” in the future.