In a news report by Wall Street Journal, it is believed that the world is going to the see the inception of an international cryptocurrency as a response to overindulgence with Bitcoins. After a recent comment made by Christine Lagarde, head of the International Monetary Fund (IMF) that governments and bank should not encourage shortchanging of Bitcoin and cryptocurrencies.
After the news surfaced up that Dubai government is on the verge of issuing their state cryptocurrency and a large number of banks are approving anonymously the state issued coins as the Block-chain hype continues. The difficulties with a global digital currency are also rising. Mainly the centralisation factor as significant cryptocurrencies like Bitcoin are ruling the market, creating a free market without any fixing on the price. The price is purely based on the consensus.
Now a globalised digital currency which is rupturing the whole market, while providing decentralised security, would draw the attention of the IMF. To fix and regulate values to manage the flow of money in and out of different countries IMF may approve a system that would run contrary to the underlying principles behind Bitcoin.
If the dollar is also used as the reserve currency, it would mean that the world’s transactional volume would do some significant global economies would need a new digital money to function as the reserve. The IMF coin could potentially be the solution to this crisis. Should it become widely accepted? In that situation, the dollar and other national currencies would be restricted to local markets only.