## The Rise of Digital Money: A Strategic Plan to Continue Delivering On The IMF’s Mandate

_Policy Papers, July 29, 2021_

## Source details

**Canonical URL:** [The Rise of Digital Money: A Strategic Plan to Continue Delivering On The IMF’s Mandate](https://www.imf.org/en/publications/policy-papers/issues/2021/07/28/the-rise-of-digital-money-462914)

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## Bibliographic details
- Published: July 29, 2021
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9781513589558.007

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### Executive summary and core findings
- Rapid technological innovation is ushering in a new era of public and private digital money, bringing about major benefits in terms of efficiency and inclusion.
- To reap the full benefits and manage risks, authorities around the world will have to address new policy challenges that are widespread, complex, and rapidly evolving.
- The paper identifies the main challenges currently arising regarding:
  - consumer protection and financial integrity,
  - domestic financial and economic stability,
  - the stability and efficiency of the international monetary system.
- Many of these challenges intersect the Fund’s mandate; the Fund must therefore monitor, and advise on, this rapid and complex transition for all members.
- The paper presents a broad vision for how the Fund can deliver on this mandate, including by enhancing resources and collaborating closely with other institutions.
- This is the first of two papers; the second lays out a more detailed operational strategy.

### Major policy and analytical challenges identified
- Consumer protection and financial integrity issues arising from new forms of digital money.
- Domestic financial and economic stability risks tied to the adoption and design of digital money.
- Systemic considerations for the stability and efficiency of the international monetary system posed by cross-border digital money flows and private digital money providers.
- Rapidly evolving technological and market developments that complicate policy responses and regulatory frameworks.

### IMF role, strategic vision, and recommended institutional responses
- The Fund should monitor developments in digital money and advise members across the identified challenge areas.
- The Fund should enhance internal resources to meet the demands of monitoring and advising on digital money transitions.
- Close collaboration with other institutions is recommended to manage cross-cutting and international aspects of digital money policy.
- The paper serves as a strategic framing; operational specifics are deferred to a subsequent paper that outlines a more detailed operational strategy.

### Key statistics and publication metadata
- Publication date: July 29, 2021
- Pages: 27
- Volume: 2021
- Issue: 054
- Series: Policy Paper No. 2021/054
- DOI: https://doi.org/10.5089/9781513589558.007
- Stock No: PPEA2021054
- ISBN: 9781513589558
- ISSN: 2663-3493

### Subjects and keywords
- Subject: Central Bank digital currencies, Currencies, Digital currencies, Financial sector policy and analysis, Financial sector stability, Monetary policy, Money, Political economy, Technology, Virtual currencies
- Keywords: Central Bank digital currencies, Currencies, Digital currencies, digital money adoption, Financial sector stability, Global, IMF's mandate, issued digital money provider, paper at-a-Glance, transparency policy, Virtual currencies

*Source: The Rise of Digital Money: A Strategic Plan to Continue Delivering On The IMF’s Mandate (Policy Paper No. 2021/054), July 29, 2021.*

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## Content in this bundle

- **Policy Paper**
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_Source: https://www.imf.org/en/publications/policy-papers/issues/2021/07/28/the-rise-of-digital-money-462914_