The International Monetary Fund (IMF) has announced that countries in North Africa, Central Asia and the Middle East can turn to technologies such as cryptocurrencies and blockchain. It was stated that illegal transaction tracking can be controlled with cryptocurrencies and, administrative processes can be made more efficient with blockchain technology.
On 13 January, the International Monetary Fund published a paper entitled Economic Management reforms that would promote inclusive growth in North Africa, Central Asia and the Middle East. The article, written by Christopher J Jarvis, Gaelle Pierre, Benedicte Baduel, highlighted the importance of cryptocurrencies and blockchain technology.
States have begun to turn to digital technologies to make official transactions more efficient and transparent. Experts noted that procurement processes and tax transactions are beginning to digitized, and digital payment technologies are gaining importance.
Technology and innovations such as machine learning and automatic information sharing have been emphasized, while cryptocurrencies were also brought to the forefront. The IMF’s article stated that cryptocurrency technology “could be used to track the flow of illegal money”.
Governments Will Be More Transparent With Blockchain’
When talking about Blockchain technology, The article stated that states can make administrative processes more transparent with blockchain.
Cryptocurrencies Bring Risks
The IMF’s article showed not only the advantage but also the disadvantage of cryptocurrencies. Although Blockchain-based cryptocurrencies make it easier to track illegal money flows, they also offer users anonymity. It is said that this feature of cryptocurrency can be used to launder money.
The advice given by experts to states at this point is to create an institutional structure, establish control mechanisms, conduct independent audits and prepare transparent processes.