IDMC Mak­ing Progress on Dig­i­tal Cur­rency Stan­dards

Trillions - - Contents -

The In­ter­na­tional Dig­i­tal Mone­tary Coun­cil (IDMC), a non-profit think-tank, is mak­ing good progress on de­vel­op­ing the pol­icy and reg­u­la­tory frame­work for re­gional cen­trally man­aged dig­i­tal cur­ren­cies such as the AMERO.

This is im­por­tant be­cause peo­ple's cur­ren­cies such as the AMERO of­fer a solid hope for fund­ing the rapid change re­quired to ef­fec­tively meet the chal­lenges fac­ing hu­man­ity. And in or­der for such cur­ren­cies to be suc­cess­ful they need to be well de­signed, man­aged and prop­erly reg­u­lated.

At present, de­cen­tral­ized cryp­tocur­ren­cies are fund­ing some im­por­tant pro­grams, but are not suit­able for wide-spread adop­tion and us­age by gov­ern­ment agen­cies or large busi­nesses.

De­cen­tral­ized cryp­tocur­ren­cies such as bit­coin present a num­ber of se­ri­ous prob­lems. One of the most se­ri­ous is that they fa­cil­i­tate crim­i­nal ac­tiv­ity. An­other prob­lem is their value in­sta­bil­ity. And cryp­tocur­rency coins can be stolen or lost. Since no one is re­ally in charge of most de­cen­tral­ized cryp­tocur­ren­cies, they are heav­ily af­fected by the chaos of mar­ket forces.

Cen­trally man­aged cur­ren­cies can greatly re­duce or elim­i­nate the crim­i­nal el­e­ment and sound man­age­ment within a man­aged net­work can help pro­vide the se­cu­rity and sta­bil­ity needed by gov­ern­ment agen­cies and en­ter­prise class busi­nesses.

But a well man­aged and suc­cess­ful non-state cur­rency may make some gov­ern­ments feel threat­ened and they could im­pose oner­ous reg­u­la­tions or greatly re­strict their us­age. In the United States and Canada there is also the prob­lem with dig­i­tal cur­ren­cies be­ing taxed in na­tional cur­ren­cies and overly re­stric­tive laws on the ex­change of one dig­i­tal cur­rency to an­other and to hard cur­rency.

The IDMC is tak­ing a multi-prong ap­proach to cen­trally man­aged dig­i­tal cur­ren­cies and has mul­ti­ple ar­eas of fo­cus that in­clude but are not limited to:

• Ac­cep­tance

• Ac­count­ing

• Tax­a­tion

• Busi­ness Model

• Plat­forms

• Reg­u­la­tion

• Se­cu­rity

• Us­age

• User Au­then­ti­ca­tion

• Value Sta­bil­ity

In com­ing months, the IDMC will be pub­lish­ing white pa­pers ex­plor­ing best prac­tices for cen­trally man­aged dig­i­tal cur­ren­cies and will pro­mote model leg­is­la­tion to state and na­tional gov­ern­ments.

For more in­for­ma­tion about the IDMC please visit www.idmc.money.

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