Front Matter
Author: International Monetary Fund. Communications Department
Language:
English
Keywords:
SPE; digital currency; bank digital currencies; central bank; central bank digital currency; cash; anonymous digital currency; providers of e-money; subsidizing cash usage; metal coin; customer profiling; pros and cons of central bank digital currency; downsides of digital currency; paper money; client interface; Digital currencies; Currencies; Fintech; Central Bank digital currencies; Global; Digital wallets
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Abstract

This paper explores impact of new digital currency on Singapore. A new wind of digitization is blowing. Even cryptocurrencies such as Bitcoin, Ethereum, and Ripple are vying for a spot in the cashless world, constantly reinventing themselves in the hope of offering more stable value, and quicker, cheaper settlement. Providers of e-money argue that they are less risky than banks, because they do not lend money. Instead, they hold client funds in custodian accounts, and simply settle payments within their networks. If most people adopt digital forms of money, the infrastructure for cash would degrade, leaving those in the periphery behind. The second benefit of digital currency relates to security and consumer protection. Digital currency offers great promise through its ability to reach people and businesses in remote and marginalized regions. A digital currency could boost competition by offering a low-cost and efficient alternative means of payment.

INTERNATIONAL MONETARY FUND

CHRISTINE LAGARDE

Winds of Change

The Case for New Digital Currency

Address at the Singapore Fintech Festival

Singapore • November 14, 2018

International Monetary Fund Managing Director Christine Lagarde delivered this address at the Singapore Fintech Festival in Singapore on November 14, 2018.

Copyright © 2019

International Monetary Fund

Washington, D.C. 20090, U.S.A.

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ISBN: 978-148438917-1 (paper)

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Cover Winds of Change
Winds of Change
The Case for New Digital Currency
Author: International Monetary Fund. Communications Department
ISBN:
9781484389171
Publication Date:
25 Jan 2019
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781484389171.076
Pages:
12