IMF Analyzes Bitcoin, Blockchain’s Role in Banking

Rage Review : The International Monetary Fund (IMF) published an article titled "Trustworthy Internet" in the magazine "Finance and Development". The article outlines the history of Bitcoin, its underlying technology blockchain and potential application cases, and lists the benefits blockchain brings to the banking and trade sectors. The tone of the article is neutral, stating an objective fact. As for whether blockchain can become the next generation of the Internet, we can look forward to it.

Translation: Nicole

The International Monetary Fund (IMF) has published an article in the journal Finance & Development examining the case for bitcoin’s blockchain technology, suggesting that while blockchain is used to “circumvent banks,” it could also bring benefits to the banking and trade sectors.

Andreas Adriano, senior communications officer at the IMF’s Communications Department, and Hunter Monroe, senior economist at the IMF’s Monetary and Capital Markets Department, commissioned an article titled “The Internet of Trust,” which outlines the history of Bitcoin, its underlying technology, blockchain, and potential use cases.

Unsurprisingly, the article leans towards the financial sector, weighing whether blockchain technology can reduce the costs and simplify the process of payment and trade settlement.

Some people view Bitcoin as a Ponzi scheme, the author explains:

“Bitcoin — or more precisely, the underlying technology that makes it work, called a distributed ledger or blockchain — is going to restructure the financial sector.”

This article is more of an introduction to blockchain technology than a guide. It avoids strong arguments for or against it, but at least states an objective fact; it clearly explains why Bitcoin is seen as a technological innovation and quotes Marc Andreessen's appreciation of its potential impact.

A quote from Marc Bayle, the ECB’s General Manager for Market Infrastructure and Payments, was used to soften the article’s tone.

When asked if blockchain can deliver on its promise to accelerate the financial world, he said:

“Current technology does not prevent real-time settlement, the real problem lies in market architecture.”

Overall, the article is neutral. It says:

“It is too early to say whether blockchain is the ‘next generation of the internet’ or merely an incremental change,” but the article ends on a positive note:

“The blockchain game has just begun.”