Categories: Bitcoin Politics

IMF and World Bank Annual Meetings Explore Block Chain’s Potential

Click here to view original web page at

IMF WB annual meeting

The annual International Monetary Fund (IMF) and World Bank (WB) meetings were held in Washington, DC, over the weekend and notably the subject of bitcoin and its underlying technology was brought up for discussion.

While some participants likened the digital currency to Esperanto – a good idea that might not live up to its potential – others criticised it as a poor store of value, according to a report from Mexican bank Banorte.

The bank reports attendees as saying:

“Nobody believes bitcoin or any of these will take over the world as the next global currency. In this context, some compared this to what happened with Esperanto, taking over the world’s language of choice, which as we all know, has not happened at all.”

However, it also indicates financial institutions are starting to take notice of bitcoin’s disruptive potential and attitudes seem to be softening.

Sceptical view

Banorte notes that financial institutions are having to deal with increasingly restrictive regulation, while at the same time they need to tackle new and disruptive technologies, including digital currencies.

“Scepticism about the use of bitcoin and other so-called ‘digital cryptocurrencies’ is all over the place with comments such as ‘stay away from bitcoin … It is a mirage’ or ‘it’s a terrible store of value’, sponsored by Warren Buffet and Jamie Dimon, respectively,” the report states.

Yet, the topic also came up in different agendas during the meeting in a much more constructive way.

Benefits in finance

Although panellists do not expect bitcoin to take over the world as a currency, they are open to the idea of applying digital currency protocols to develop new platforms and deliver new features.

There was recognition that such protocols could serve as an “initial layer” upon which platforms of fully blown payment systems could be built.

“The main nicety is that this protocol conducts real-time operations, in which value is transmitted, instead of the current use of corresponding banking, representing a liability for one of the counterparties, in both, simple money transfers and FX operations. This reduces transaction costs and counterparty risk,” the bank says.

One example of potential block chain applications in the financial sector is Epiphyte, a crypto-finance platform designed to connect banking networks with cryptocurrency networks. Epiphyte won the SWIFT Innotribe Startup Competition at the Sibos 2014 event in Boston earlier this month.

Summing up, Banorte says the sentiment toward cryptocurrencies was overall quite balanced:

“All in all, instead of perceiving a full rejection of cryptocurrencies, we observed a much more constructive assessment of these around its operational aspects to build more secure and cheaper-to-use payments systems.”

Image courtesy of IMF

BanorteIMFWorld Bank

While some participants likened the digital currency to Esperanto – a good idea that might not live up to its potential – others criticised it as a poor store of value, according to a report from Mexican bank Banorte.

The bank reports attendees as […]


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by
Tags: regulation state

Recent Posts

  • Bitcoin Business

Litecoin and the Miami Dolphins Join Hands Over Charity

Who would have known American football and cryptocurrency would go so well together? In a press release, The Miami Dolphins… Read More

4 hours ago
  • Bitcoin Business

Crypto News: Grayscale’s Record Inflows, Shell’s New Blockchain Investment

Increasing amounts of capital are flowing into the crypto and blockchain start-up markets. By following the money, investors can uncover… Read More

4 hours ago
  • Bitcoin Business

David Koepsell (YICB 07), Co-founder of Encrypgen, LLC and Blockchain in Healthcare Global

David Koepsell is the co-founder and chief executive officer of Encrypgen, a software company creating next-generation blockchain solutions for genomic… Read More

4 hours ago
  • Bitcoin Business

Bitcoin, XRP, And LTC Prices Recover After Tumbling On Libra Hearings, What’s Next?

Congressional hearings on Facebook’s Libra took major cryptocurrencies on a wild ride last week. After tumbling early in the week,… Read More

4 hours ago
  • Bitcoin Business

Fiat Money Outpaces Bitcoin 800:1 for Money Laundering: Report

Research by Messari revealed that for every dollar used on the dark web in bitcoin, $800 is laundered in cash.… Read More

4 hours ago
  • Bitcoin Business

Silver’s Rally May Be Fueled by Concerns About Bitcoin’s Status as a Safe Haven Investment

Bitcoin and the entire cryptocurrency markets have incurred a severe bout of volatility over the past several weeks and months,… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More