International Monetary Fund (IMF) and World Bank Talk Blockchain’s Global Impact
International Monetary Fund (IMF) and World Bank Consider Global Impact of Disruptive Tech
An annual meeting supposedly took place in which the impact disruptive technologies like distributed ledger (DLT) and smart contracts were considered and weighed upon. In particular, the meeting consisted of large players like the International Monetary Fund (IMF) and the World Bank, who have since laid out a framework that needs to be addressed globally.
More specifically, the supposed “12-point agenda” or the “Bali Fintech Agenda”, as referenced by Bitcoin Magazine, was established to help countries assess how they would integrate said technologies and the policies surrounding them.
According to the President of the World Bank Group, Jim Yong Kim,
“Countries are demanding access to financial markets.” He also added how the new agenda would meet said demands, specifically in the “cases of low-income countries where access to financial services is low.”
The following points have been given to 189 countries insisting that said members should make it part of their objectives moving forward:
Consider Fintech With an Open Mind
Fintech should be openly considered, as the duo believes it has the prospective to accelerate financial services, especially to low-income countries, where said services are either rarely observed or lack in timing.
Accept New Technologies to Boost Financial Services
The acceptance of emerging technologies and implementing them is believed to help said countries strive, as it can make it more affordable, while favoring policies in place.
Compete in “Open, Free and Contestable Markets”
Policy frameworks will allow countries to have a complete picture of the market, which typically entails a mix of “risks, interoperability, and transparent access to key infrastructures,” as reported by Bitcoin Magazine. The combined facets will allow countries to have a better chance at competition, while promoting feasible solutions.
Include Fintech to Help Better Financial Markers
The inclusion of new technologies is said to promote economic growth while reducing poverty altogether. This process should also include the sharing of knowledge between essential players of the community, which includes “public and private sector players, civil society and other stakeholders.”
Be Watchful of Developments and Have Complete Understanding of the Changes
This point was made mainly to encourage communication with industry leaders. As monitoring the developments being made, allows countries to fully understand the solutions at hand. Also, it lays out opportunities and risks that come with “facilitating the timely formation of policy responses.”
Abide by Regulation to Ensure Stable Financial System
With the integration of new technologies, the role of regulators will only strengthen. This is not entirely bad, considering the number of scams and illegal activities that have taken place using technology in 2018 alone. Ultimately, regulators will have to be on their game to ensure that frameworks are updated in a way that rids the country from potential risks. Such regulations should also promise progress and not hinder it.
Ensure Financial Stability
Regardless of how efficient fintech can be it has been deemed crucial that the monetary policies in place should protect financial stability and the people.
Ensure System in Place is Secure Enough to Enjoy Fintech Benefits
This is an important facet, as previously mentioned, because it entails ridding a financial system of cyber-attacks and other scams. Countries are required to place emphasis on “data ownership, protection and privacy, cybersecurity …,” and assess the different levels of risk.
Do you believe that the framework given by both the World Bank and IMF will help countries open their doors to technological advances? Let us know in the comments below!