The International Monetary Fund (IMF) have written in their blog section about the rise of digital payments and stablecoins.
In the document the IMF describes some concerns they have saying:
“While many stablecoins continue to be claims on the issuing institution or its underlying assets, and many also offer redemption guarantees at face value (a coin bought for 10 euros can be exchanged back for a 10-euro note, like a bank account), government-backing is absent. Trust must be generated privately by backing coin issuance with safe and liquid assets. And the settlement technology is usually decentralized, based on the blockchain model.”
So the fact that there is no physical asset backing the stablecoins seems to be a big concern.
They are clearly worried about the technological benefits and the fact that could be easier to use stablecoins instead of traditional banking instruments:
The strength of stablecoins is their attractiveness as a means of payment. Low costs, global reach, and speed are all huge potential benefits. Moreover, stablecoins could allow seamless payments of blockchain-based assets, and can be embedded into digital applications thanks to their open architecture, as opposed to the proprietary legacy systems of banks.
The IMF go on to say that they think the advancement of being able to use them via social media could be the game-changer. “Stablecoins offer the potential for better integration into our digital lives and are designed by firms that thrive on user-centric design”
The IMF will find cryptos a threat but not in the same way as a central bank or a government. The government have to worry about how they will collect taxes and central banks need deposits to lend and earn.
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