World Bank Global Director of Finance Deems Stablecoins Crucial to Reduce Current Remittance Rate
In a recent interview with Bloomberg Markets and Finance, Global Director of Finance at the World Bank, Alfonso Garcia Mora delved into topics including the impact of technology on central banks, challenges with regulating Fintech companies and digital currencies.
In regard to digital currencies, he supposedly expounded on stablecoins and Libra among others reports AMB Crypto. As per Mora, stablecoins are surely to play a significant role when it comes to creating togetherness within cross-border payments and remittances.
With remittances currently sitting at 7 percent and a goal of reducing it down to 3 percent set in stone, the latter is deemed possible only by introducing stablecoins. That said, he is aware of its novice nature and the need for detailed information to ensure that risks are avoided altogether.
As for what he makes of Libra, he deems it a “great innovation”, but isn’t convinced that the goals set in place from the get-go will be carried out.
Finally, when asked regarding Bank of England’s potential plans for a reserve digital currency, he remained neutral as to whether or not it is viable given the current ecosystem. He simply noted that they were going in a direction that is surely to welcome ‘new models of financial parameters,’ writes the news outlet.