According to Tao Zhang, state-owned cryptocurrencies can improve the traditional financial system

The Deputy Chief of the International Monetary Fund (IMF) Tao Zhang said that public cryptocurrencies can become «an available and legal digital form of fiat money».

Zhang stressed that public digital currencies can bring many advantages to the traditional financial system.

«Most important of all it will be a more efficient payment system. Secondly a more available financial system. In third place increasing stability and reducing entry barriers for new companies. In fourth place the strengthening of monetary policy. And in fifth place public cryptocurrencies can become a repellent of new digital currencies,» Zhang said.

The data analytics company CB Insights analysed the state cryptocurrency market. According to analysts two types, such currencies are being developed in different countries: basic and bank.

Basic digital currencies should take place of paper money and allow citizens to open accounts directly with the Central Bank. Bank digital currencies should become a means of interbank payments and may jeopardize the current banking system.

The researchers also reported that 80% of Central banks surveyed are exploring the possibilities of public cryptocurrencies.

In early February the Chairman of the Federal Reserve Board Jerome Powell said that the FRB is actively working to create a «digital dollar».

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