International Monetary Fund (IMF) and International Auditing Firm (KPMG) Join the Cryptographic Revolution

“Technology is changing and we have to change with it. We don’t want to be the last page on a dead branch when everyone else has gone with the wind.”

– Christine Lagarde, International Monetary Fund ( IMF , Estonian). International Monetary Fund)

KPMG, an audit firm owned by the Big Four (the world’s leading business consulting company), is one of the world’s most professional business institutions. Now he stood up boldly and declared that “cryptographic assets are a serious matter.”

In a recent report, “ Institutionalizing Cryptographic Money ,” KPMG wrote that…

“In 2018, we will see a number of new entrants to the market; such as token platforms, stable money and even ancient financial institutions coming out with their cryptographic products and services. Cryptographic money can no longer be ignored.”

KPMG’s enthusiasm is based on the potential of cryptocurrencies to eliminate friction and inefficient solutions in our current financial transaction system.

He considers cryptographic assets “impossible to ignore” now that they are becoming a real asset class – one that will shape the future of financial systems.

But you don’t have to believe me, or them. An even stronger voice has now joined the crypto choir.

Christine Lagarde, the head of the IMF, has spoken extensively on cryptocurrencies recently.

Today I am quoting Lagarde for a long time, because at the moment he is the most influential person who has started proclaiming cryptocurrencies:

“It simply came to our notice then. In this new world, we meet everywhere, anytime. The city squares are back – virtually, on our smartphones. We exchange information, services, even emoticons instantly … from person to person.

“We are surrounded by the information age, and information is our ‘new gold’ – all against the background of growing concerns about privacy and cybersecurity. We live in a world where the millennium is reinventing our economy, with phones in hand.

“And here is the key to change for us: money changes itself. We expect it to become more convenient and user-friendly; maybe he could also look less serious.

“We expect the money to be part of the social media that is available online and accessible from person to person at all times, including, for example, micropayments. And, of course, we want it to be cheap and secure, protected from criminals and intelligence.

“What is the role of paper money in this digital world? You can already read ‘don’t accept paper money’ from shop windows.” Not only in Scandinavia , which is leading the loss of paper money. Elsewhere in the world, the demand for paper money is also declining, as recent IMF studies show. And in 10, 20, 30 years – will anyone change any more pieces of paper?

“Think of the new specialized payment intermediaries whose bread is e-money – from AliPay and WeChat in China to Paytm in India and M-Pesani in Kenya. These currencies are being created with the digital economy in mind. They meet the demands of the people, and those of the economy as well.

“Even cryptocurrencies like Bitcoin, Ethereum and Ripple are fighting for their position in the world of paper money; constantly reinventing themselves to provide more stable value and faster, cheaper solutions.”

In the eyes of the IMF, cryptographic assets have a much bigger future than just brokering payments between people. They have already turned their eyes to the global financial system itself.

Option: Digital Currencies Secured by Central Banks

The IMF, an organization spanning 189 countries, operates on several fronts: it promotes global financial cooperation; ensures financial stability; promotes international trade and high employment, as well as sustainable growth, and seeks to reduce poverty.

So, in fact, the “serious thing” is that an organization like the IMF sees a real opportunity to use cryptocurrencies as digital currencies. Lagarde continued:

“We are now looking at another aspect: the role of government – central banks – in this new financial landscape.

“For their part, cryptocurrencies seek to reinforce faith in technology. So as long as they remain transparent – and as long as you understand their technology – you can trust their services.

“More specifically, should central banks issue a new form of digital money? A government-guaranteed token; or perhaps an account held directly with the central bank that is available for payments to individuals and businesses? True, your deposits in commercial banks are already digital. But digital currency would be the responsibility of the government – like paper money now – not a private company.

“It simply came to our notice then. Many central banks around the world are seriously considering these ideas – including Canada, China, Sweden and Uruguay. They embrace innovation and new thinking; and the IMF wants to do the same.

“I believe we should consider issuing a digital currency. The government could benefit from providing money to the digital economy.”

Unbelievable! If central banks start issuing cryptocurrencies, early investors – hopefully you – could make huge, generational fortunes from it.

Of course, it is impossible to say which cryptocurrencies will be the ultimate winners.

On the same topic: Is Bitcoin Dying? If so, who will replace him?

But I absolutely believe that the technology behind them – the blockchain – will one day become as important and ubiquitous as e-mail and the internet itself.

Some far-sighted, public companies are investing in the blockchain of their future and bringing decent wealth to their early investors.

Don’t get me wrong; cryptocurrencies have come to stay. But big, big, big money is going to flow into investing in those businesses that are developing and moving the backbone of the cryptocurrency revolution.

Best wishes,

Tony Sagami

Article – Weiss Ratings

Translation: Lucreds Plus OÜ