- The OMFIF is seeking to bring balance and order to the digital currency world
- The DMI is designed to bring thought leaders from industries together to create a leading digital currency
- Cash will be eventually phased out as central banks create digital currencies with the guidance of the DMI
In the wake of the Libra fallout, more and more companies are looking to launch their own digital currencies to be used as a recognized payment method. But, this will inevitably lead to a world with millions of currencies that are ruled and controlled by corporate giants that have their own interest at heart.
In a bid to make the transition humanity appears to be keen to make towards digital currencies as smooth as possible, the Official Monetary and Financial Institutions Forum (OMFIF) has launched the Digital Monetary Institute (DMI).
An Institution to Make Transition as Smooth as Possible
When Facebook attempted to launch Libra, there was uproar from governments and people all around the world, resulting in Libra getting pushed back. The DMI is aimed to bring together leading minds from the financial, regulatory and technical industries to create a harmonious bond between the world and a new global digital currency.
The DMI will focus principally on payments in the wholesale and retail markets, with a special focus on those issued by central banks rather than institutions and corporations like Facebook and its Libra digital currency.
Cash is Losing its Grip
According to a report released alongside the launch of the DMI, the DMI noted that cash is losing its convenience, and with pandemics like COVID-19 becoming increasingly common, we could see cash dropped altogether. The immutability and trust that blockchain provides also plays into the government’s hands as the war against crimes continues to rage on.
Conversely, back in 2018, Mario Draghi, then head of the European Central Bank, said that cash is looking stronger than ever before, being one of the most used payment methods inside the European Union. If the DMI’s research is anything to go by, Draghi could be in for a rude wakeup call.
The DMI could be just what central banks need to restore their power, and it could also prove to be the mediator that the world needs during this digital transition period that we’re presently going through.