IDMC Making Progress on Digital Currency Standards
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:
• Business Model
• 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.