In the recent past Bitcoin and various Cryptocurrencies are facing huge problems and controversies across the world, but if you see in practicality everyone has accept the fact that cryptocurrency and blockchain are next generation technologies which will revolutionize entire world and financial system in a huge way. And really it is predicted now when two major economic organisations of the world – the World Bank and the International Monetary Fund (IMF) have launched together a new private cryptocurrency to study and educate blockchain technology and its real-world applications.
IMF and World Bank has named as “Learning Coin”, the new quasi-cryptocurrency project is for their employees to interpret how these digital assets work. Using ‘Learning Coin’, World Bank’s and IMF’s staff will study the advantages and disadvantages of digitally distributed ledger technologies including smart contracts, transparency as well as money laundering. Both financial institutions want to centralize blockchain and restrict distributed digital assets across the world.
Since the Learning Coin app is just a prototype built to explore the new technology, it is not available to general public any one in the world. The Washington-based agencies has also reported that the coin will be inaccessible or restricted for anyone or any entity outside the World Bank and the IMF.
According to IMF, the project will help policymakers, legislators, governments and economist to understand the technology. Christine Lagarde, Managing Director of IMF urged central banks all over the world to consider using digital currencies to satisfy public policy goals related to financial inclusion, privacy, consumer protection and fraud prevention.
“The development of crypto-assets and distributed ledger technology is evolving rapidly, as is the amount of information (both neutral and vested) surrounding it. This is forcing central banks, regulators and financial institutions to recognize a growing knowledge gap between the legislators, policymakers, economists and the technology,” said IMF in a statement.
Last year India’s central bank, Reserve Bank of India also reported that they are working on a indigenous digital currency called “Lakshmi Coin” to make it an alternative to the Indian rupee for digital transaction. Unlike Bitcoin and other cryptocurrencies which are non-fiat in nature, the new Lakhsmi Coin will be a fiat-cryptocurrency. Fiat currency is legal tender whose value is backed by the government that issued it.
Earlier in February this year, JP Morgan, an American multinational investment bank launched the the first US Bank-backed blockchain-based asset called JPM Coin, which is equivalent to an American Dollar. Last year in December 2018, Facebook was reported to be working on its own cryptocurrency called ‘Stablecoin’ to let users transfer money on WhatsApp.