(BlockBar) It’s reported that the IMF is exploring the development of digital currency IMFCoin. If IMFCoin comes out, the SDR will be completely decoupled from the dollar.
The IMF (International Monetary Fund), together with the World Bank, is the world’s two largest financial institutions. One thing can help you understand its function and status: during the European debt crisis, it had issued bailout loans to Ireland and Greece to help them avoid being overwhelmed by huge financial debts. So, this is an intergovernmental financial cooperation institution. At present, there are 189 countries joining the IMF, that is to say, if IMFCoin can really come out. There is no doubt that it will influence the whole world.
But whether this piece of news is true remains to be verified. According to foreign media, last week, at the Bank of England Forum, Lagarde hinted that the organization was planning to introduce a global digital currency, IMFCoin, similar to Bitcoin, under the SDR mechanism, in order to replace the existing reserve currency. Although there is no further and clearer information, the general shape of IMFCoin can be outlined according to several key words in the above report.
Bitcoin is called “digital gold” and SDR is nicknamed “paper gold”, but they have different meanings. Bitcoin is called digital gold because of its value storage function and deflationary characteristics. However, SDR was originally designed as a supplement to deal with the deficiency of gold. But later it developed into a supplement of dollar. So, it is essentially an accounting tool, or in other word, a currency. This is the base of IMFCoin.
IMFCoin is supposed to replace SDR. According to the current public report, if the digital currency is really designed at the pattern of Bitcoin, it will not only decouple the US dollar, but also the current basket of sovereign currency. It will become a deflationary currency entirely guaranteed by the technology, with block chains to account for. Members can exchange IMFCoin into sovereign currency at will on the exchange, while the corresponding price will fluctuate greatly due to the period of block production and other factors.
However, there is not enough credible information to determine how IMFCoin will be designed. But if IMFCoin comes out, the SDR will be completely decoupled from the dollar. The complexity of the political game can be imagined, which is not achievable in the short and medium term.
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