A recent report from the Financial Times is proposing that the International Monetary Fund (IMF) and the World Bank have jointly developed a private blockchain for future experimentation and exploration of the technology. What’s more, the two actors have reportedly already launched a coin which seems very much like a cryptocurrency in everything but name.
The IMF and the World Bank have launched a private blockchain
This report first broke in April 12th, and suggests that the IMF and the World Bank have launched a so-called “Learning Coin” which is based on their private blockchain. Although this asset class seems eerily similar to a cryptocurrency, the Financial Times made sure to stress that this is not the case. Furthermore, the Learning Coin is also said to lack a money value.
This comes as both the IMF and the World Bank are said to be interested in investigating the possibilities and particulars of blockchain technology and related applications. An article reporting on the matter specifically noted that the Learning Coin was developed “in order to better understand the technologies that underlie crypto assets.”
In addition to this, an application will reportedly accompany the use of the Learning Coin. This application is said to act as a hub of sorts for research, blogs, presentations and videos. Moreover, the Learning Coin is intended for internal use within the IMF and the World Bank as they experiment and explore blockchain technology.
What’s more, testers at the IMF and the World Bank will supposedly be able to earn Learning Coins as the employees reach particular educational milestones. Furthermore, the employees will then also be able to redeem earned Learning Coins in exchange for certain rewards.
This signals growing interest for blockchain technology and crypto assets
Although perhaps not of colossal importance on its own, this development signals the increasing importance of blockchain technology, as well as the transformative power cryptocurrencies have. The fact that behemoth institutions like the IMF and the World Bank, who are closely tied to the traditional banking system, are now actively exploring blockchain is therefore a particularly notable development.
The Financial Times report also notes on the power cryptocurrency assets hold:
“The development of crypto-assets and distributed ledger technology is evolving rapidly, as is the amount of information (both neutral and vested) surrounding it. This is forcing central banks, regulators and financial institutions to recognize a growing knowledge gap between the legislators, policymakers, economists and the technology.”
As such, a successful trial might precipitate wider blockchain technology adoption by the IMF and World Bank, who supposedly might use the technology to launch smart contracts, use it to combat money laundering, and increase the overall level of banking transparency.
Image courtesy of Twitter/@IMFNews, International Monetary Fund
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.