The IMF Must Develop Best Practices Before Government-Backed Cryptocurrencies Destabilize the International Monetary System

Authors

Jacob Goldsmith

Abstract

Central banks are flocking to government-backed cryptocurrency, taking full advantage of the media attention brought to Bitcoin and other digital currency. However, while government-backed cryptocurrency avoids some pitfalls presented by private cryptocurrencies, other problems are less easily sidestepped. And government-backed cryptocurrencies, if widely adopted, could present issues to the stability of the international monetary system. These problems must be addressed, and not only as they arise. Unfortunately, national and international governments have shown no real ability to deal with troubles arising from private cryptocurrency. The government-backing of such digital currency changes the calculus, permitting a new entity to deal with these problems. The International Monetary Fund (IMF) is the best organization to deal with the issues. This Note submits that the IMF should act quickly to take pre-emptive measures and develop a system of best practices for dealing with government-backed cryptocurrency in pursuance of ensuring a stable international monetary system.

Recommended Citation

Jacob Goldsmith, The IMF Must Develop Best Practices Before Government-Backed Cryptocurrencies Destabilize the International Monetary System, 34 Emory Int'l L. Rev. 595 (2020).
Available at: https://scholarlycommons.law.emory.edu/eilr/vol34/iss2/3