In the advanced era of FinTech, our medium of exchange (currency system) has seen paradigm shift in the last 3-4 centuries. There has been a commendable transformation in the global currency system that has brought us ease of doing business, as it has evolved from barter to electronic payment systems. Especially, in this decade, we are witnessing many indications of a remarkable shift in the global currency dynamics. Various currency mechanisms like devaluation, IMF naming Chinese renminbi as the world reserve currency was surprising, while joining only the dollar, euro, pound and yen in this elite rank opens the door to wider use of the renminbi in trade and finance.

Most interestingly, crypto-adoption, stable-coins, CBDC (Central Bank Digital Currency) and tokenization are striking the chord among the financial communities.

The Ripple has been popular among the banking community as its edge to transact overseas payments swiftly and efficiently is perceived as a competitive advantage. While the data from the World Bank divulge that the international trade involving remittances were valued at $1.93 billion in 2018. Wherein, the prospects that is imminent to lure abundant investment inflow from the aspirants. The global remittance is most likely to surge to over $8 billion within next decade or so.

While European Central Bank (ECB) has divulged in the recent past as well that it intends to accelerate its plans for a central bank digital currency (CBDC) upon consumers’ discomfort in cash transactions.

The UN (United Nations) secretary-general, Mr. Antonio Guterres appeared to be constructive on budding technology, he says the intergovernmental organization must embrace the blockchain technology going forward, Forbes reports.

In a statement provided to Forbes by the secretary-general’s office, while highlighting some key statistics of the emerging technology has pioneered through cryptocurrency concept, namely, ‘bitcoin’ as a crucial element of the organization’s agency that introduced and managed to generate $50 billion in revenue annually. He has also pointed out the Chinese prominence for the blockchain technological deployment as their President commented constructively on the same.

The IMF also emphasized the potential role among the emerging CBDC (Central Bank Digital Currency) development, discussed the pros and cons of sovereign digital currencies which is expressed in their IMFBlog.

They pointed out some countries that are dynamically piloting the projects to explore the scope and the feasibility of CBDC. To do so, they have increased resources allocated to CBDC and fintech research at the central bank, sometimes in partnership with private sector advisors. On this perspective, quite a few nations are also reconsidering their legislation to fortify CBDC prospects in case it were issued.

IMF also appeared to have figured out some key elements in which the authorized bodies can be of assistance to nations looking to launch their own CBDC.

IMF has come up with some ways through which they could lend helping hand, namely, Convening relevant parties to discuss policy options, informing the policy debate, and helping countries develop policies.