An official from the International Monetary Fund (IMF) suggested that central banks need to make fiat currencies “more attractive for the digital age” in an article published May 31. Deputy Director of the Monetary and Capital Markets Department Dong He suggested three responses to combat potential competition to central banks from cryptocurrencies.
First, He stated that, “[Central banks] should continue to strive to make fiat currencies better and more stable units of account.” He stressed the role collective expertise and experience play in monetary policymaking. The article quotes IMF Managing Director Christine Lagarde, who said that “the best response by central banks [to crypto] is to continue running effective monetary policy, while being open to fresh ideas and new demands, as economies evolve.”