IMF Conference

The 11^th Statistical Forum of the International Monetary Fund (IMF) will take place in hybrid format (in person and virtually) in Washington, D.C. during November 15 to 16, 2023. The Forum is a platform for policymakers, researchers, the private sector, regulators, and compilers of economic and financial data to come together to discuss cutting edge issues in macroeconomic and financial statistics and to build support for statistical improvements.

The theme of this year’s Statistical Forum is Measuring Money in the Digital Age. Digitalization is pervasive. It has impacted all aspects of life – money is no exception.  There are daily accounts of the rise and fall of digital currencies, stable coins and other types of crypto assets, however there is little formal “accounting” of these new forms of money. Digitalization is also changing the way individuals and businesses interact with the financial system. As digitalization continues to impact the future of money and the exchange of value, effective policy and regulation are needed to ensure a stable and equitable financial system.

The Forum will explore (i) the new forms of money and payments, (ii) the implication for financial stability and monetary policy, (iii) the impact on financial inclusion and illicit financial flows, and (iv) how we can better measure the new forms of money and payments to support policymaking. The Forum focuses on a discussion track, where participants will have the opportunity to share experiences, and build on topics of mutual interest through presentations and panel discussions.

The IMF’s Statistical Forum Program Committee seeks proposals for research papers or empirical papers reporting on work or experiences on measuring money in the digital age. Contributions are solicited on the following topics of interest, as outlined in the different proposed sessions [1]:

Session I: New forms of money and payments systems.

• How is technology changing money and payments? What are the new forms of money and payments?
• Who are the issuers?
• While technology brings along benefits such as faster, cheaper, and more efficient payments, potentially enhancing financial inclusion, what are the accompanying risks?
• Digitalization of money has opened the door to fragmentation, currency substitution, and loss of policy effectiveness. Has the role of money evolved?

Session II: New forms of digital money have raised questions about the effectiveness of monetary policy and financial sector regulation.  Are changes needed so as not to threaten monetary and financial stability?

• Whether issued by the public or the private sector, what are the implications of digital money for monetary policy implementation?
• How are the different forms of money affecting our understanding of key indicators such as monetary and liquidity aggregates? Are there new indicators needed?
• How could digital currencies impact monetary policy frameworks, as well as the size and composition of central bank balance sheets?
• How to ensure stable financial markets if crypto assets are to exist at par with central bank digital currencies (CBDCs)?

Digitalization of money and payments has the potential to reshape the international monetary system.

• How has digitalization of money affected cross-border payments?
• How can foreign CBDCs and global stable coins raise pressures for currency substitution and worsen vulnerabilities from currency mismatches?
• How can increasing foreign CBDCs currency substitution impair monetary policy transmission? How can the “digital dollarization” lead to a loss of monetary sovereignty and financial stability?
• What are the appropriate safeguards that can be imposed, considering how hard it may be for regulatory authorities to enforce exchange restrictions and capital flow management measures?

Session III: The rise of digital finance and FinTech solutions has, on one hand, had positive effects on financial inclusion, on the other has raised concerns as the enabler or facilitator of illicit financial flows. When money can be illegally earned and transferred across borders digitally, tackling the problem of illicit financial flows is a bigger concern.

• Banks and non-banks are offering digital financial services for financially excluded and underserved populations. How has access to digital financial services impacted financial inclusion: benefits and risks?
• How can digital technologies ease the process of earning money illegally and transferring funds illicitly?
• Is there a way for digital technology to fight illicit flows? Is CBDC, a regulated alternative to cryptocurrencies, the right solution to counter illicit financial flow risks?

Session IV: Internationally consistent and comparable statistics are needed to better measure the new forms of money and payments. Consistent recording of new forms of digital currencies, stable coins and other crypto assets in macroeconomic statistics across economies, underpinned by a reliable data framework, will be important.

• What are the highest priority data gaps that we need to address for an appropriate policy and regulatory response?
• How will the measure of broad money be affected if crypto assets can be used as a substitute for national currencies?
• What is an appropriate data collection framework for digital money and crypto assets that will help policymakers and regulators monitor these developments and any associated risks in the future to ensure the proper coverage of monetary aggregates and international capital flows?

[1] The sessions’ organization is currently tentative, and some topics are clubbed as part of a singular session. Upon finalization of the agenda, the sessions will be better organized, and can be split further.