If central banks back up virtual currencies, we’ll experience virtual currency boom, IMF says

According to Tommaso Mancini-Griffoli, an International Monetary Fund official, future of digital currencies depends greatly on central banks. If central banks decide to back them up, there will be space for innovations in retail payments.

Mancini-Griffoli says that whole the system could be based on digital currency created by central banks. Such currencies would be as credible as currencies provided by central banks are. A trust in digital currencies could grow among customers in general and virtual currencies could be widely used on everyday purchases. Effectivity of payments would grow, or at least cash flow would increase, what could save costs. 

Mancini-Griffoli talks about possible public-private partnership project. A licensed operator of the digital currency would hold his balances with the central bank. And in exchange the operator could trade their virtual currency for publicly traded stablecoin. Digital currencies would be connected to central bank’s reserves and central banks could control reserves in economy, even in the digital currency sector. Overall, this could lead to virtual currency stability


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