Digital Payments and Finance

Digital technology has been used in finance for some time. But recent advancements in the recording and settlement of assets – whether these are money or securities – has opened new opportunities and raised new risks. New firms, and even open-source developer communities, have introduced new digital assets such as crypto assets, stablecoins, and eMoney, some of which can be used for payments. Financial firms are also issuing and transacting assets on new infrastructures leveraging distributed ledger technologies. Questions emerge relative to their interoperability within and across borders. Finally, central banks are naturally considering how to make central bank money available in new digital forms and on new infrastructures. Macro-financial implications, such as on capital flows and currency use, must also be understood and managed. The same goes for risks to financial stability, financial integrity, and consumer protection for instance.

As the international organization created to promote international monetary cooperation and oversee the stability of the international monetary system, as well as contribute to countries’ economic and financial stability, the IMF plays a key role in this new and evolving space.