The global financial crisis and the bailouts of major financial institutions renewed skepticism in some quarters about central banks’ monopoly on the issuance of currency. Such skepticism fueled the creation of Bitcoin and other crypto assets, which challenged the paradigm of state-supported currencies and the dominant role of central banks and conventional institutions in the financial system.
In this article, get a different perspective from Dong He, Director of the IMF’s Monetary and Capital Markets Department. He explores how monetary policy might change if the current problems afflicting crypto-assets are overcome and adoption goes mainstream.
Be sure to check out this article by Andreas Adriano as well. Andreas, a senior communications officer at the IMF, takes a look at crypto euphoria and bubbles.