To learn more about cryptocurrencies and blockchain technology, the International Monetary Fund (IMF) and the World Bank have launched a private blockchain and quasi-cryptocurrency called “Learning Coin”.
According to a report in the Financial Times, Learning Coin will be “inaccessible outside the World Bank and the IMF and have no monetary value whatsoever”. It is not a real cryptocurrency and will not be openly available.
To support the coin, the two organizations have launched a private blockchain. The development of the coin has allowed staff to become familiar with the technology that underlies crypto assets as well as an understanding of the possible use cases.
The Learning Coin app will serve as a “hub for knowledge” helping users to share content like research, videos and presentations. The World Bank and IMF will likely use the blockchain to launch smart contracts, prevent money laundering and encourage transparency. The app is a “prototype that aims to show the good, the bad and the ugly of the technology, without hype or uninformed criticism”.
This process will allow them to gain a deeper understanding of how crypto assets could be applied in a real life situation.
Building A Knowledge base Among IMF And World Bank Staff
“The development of crypto-assets and distributed ledger technology is evolving rapidly, as is the amount of information (both neutral and vested) surrounding it,” said the IMF in a statement.
“This is forcing central banks, regulators and financial institutions to recognize a growing knowledge gap between the legislators, policymakers, economists and the technology. This project begins to bridge that gap and form a strong knowledge base of the technology among IMF and World Bank staff”.
Staff members will earn coins for achieving educational milestones, and it is hoped that they will be able to redeem the coins for rewards.
This comes mere days after Christine Lagarde, the Managing Director of the IMF, said that the role of disruptors and anything using distributed ledger technology is “clearly shaking the system”, adding, “We don’t want innovation that would shake the system so much that we would lose the stability that is needed”.
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