Topic: IMF.org - Virtual currencies are not likely to be adequate stores of value. (Read 308 times)
July 01, 2017, 02:35:44 PM
Virtual currencies? Like Linden Dollars?
July 01, 2017, 02:29:04 PM
A new warning from IMF:
Quote
First, the potentially erratic valuation of virtual currencies introduces risks and could
limit the adoption of hub-and-spoke networks, at least for large value payments.
He and
others (2016), for instance, argues that in their current form,
virtual currencies are not likely to be adequate stores of value
given the volatility in their exchange rates to fiat money.
This same volatility would undermine hub-and-spoke networks, as two “foreign exchange rate” conversions are
needed: when the token is acquired, and when it is sold.
Even if the virtual currency is held for very
short periods, the transaction involves foreign exchange rate risk. ...
limit the adoption of hub-and-spoke networks, at least for large value payments.
He and
others (2016), for instance, argues that in their current form,
virtual currencies are not likely to be adequate stores of value
given the volatility in their exchange rates to fiat money.
This same volatility would undermine hub-and-spoke networks, as two “foreign exchange rate” conversions are
needed: when the token is acquired, and when it is sold.
Even if the virtual currency is held for very
short periods, the transaction involves foreign exchange rate risk. ...
http://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2017/06/16/Fintech-and-Financial-Services-Initial-Considerations-44985
That's just, like, their opinion, man.
Our opinion is that national currencies are not an adequate store of wealth.
July 01, 2017, 01:32:43 PM
A new warning from IMF:
Quote
First, the potentially erratic valuation of virtual currencies introduces risks and could
limit the adoption of hub-and-spoke networks, at least for large value payments.
He and
others (2016), for instance, argues that in their current form,
virtual currencies are not likely to be adequate stores of value
given the volatility in their exchange rates to fiat money.
This same volatility would undermine hub-and-spoke networks, as two “foreign exchange rate” conversions are
needed: when the token is acquired, and when it is sold.
Even if the virtual currency is held for very
short periods, the transaction involves foreign exchange rate risk. ...
limit the adoption of hub-and-spoke networks, at least for large value payments.
He and
others (2016), for instance, argues that in their current form,
virtual currencies are not likely to be adequate stores of value
given the volatility in their exchange rates to fiat money.
This same volatility would undermine hub-and-spoke networks, as two “foreign exchange rate” conversions are
needed: when the token is acquired, and when it is sold.
Even if the virtual currency is held for very
short periods, the transaction involves foreign exchange rate risk. ...
http://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2017/06/16/Fintech-and-Financial-Services-Initial-Considerations-44985
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