IMF Says Cryptocurrency Is A ‘Special’ Type Of Currency

The pandemic is defining a New Normal for everything, it has also changed some attitudes. Let’s just say that the previously strong stand against cryptocurrency, has softened considerably. Governments faced a mountain of challenges during the global health crisis, almost everything that had to be done seemed super tough. 

As governments struggled to find the money to fund stimulus packages for the people, it was not just finding that money that turned out to be a challenge. Conventional money had to be transferred through the existing banking system. Banks were disrupted as a result of lockdowns that restricted physical people movement. People had to reach an ATM or bank to withdraw that money. The entire system was stressed even as, the whole process had just begun. 

Those in authority started to compare the pros and cons of how cryptocurrency operated versus conventional money processes. Without delving deep into the private crypto industry, the concept of CBDC (Central Bank Digital Currency) caught on. Simply put this was like an official digital currency for a nation. CBDC could be structured and operated in a way that, it would always be under the watch of the government. 

The International Monetary Fund (IMF) has during this time, made some very pro cryptocurrency statements. While it did mention CBDC there was a clear indication that, reference was being made to the whole concept of cryptocurrency – CBDC and private. 

The IMF did mention ‘special currency’ as a term when talking about cryptocurrency. This does obviously reveal a pro crypto attitude from one of the world’s top financial bodies. Finance and crypto portals played up, the IMF words as a thumbs up for crypto. 

Glitzkoin CEO and diamond veteran Navneet Goenka, had some interesting words on the subject, ‘…. yes I did read that IMF referred to cryptocurrency as special currency. While the pro crypto stand should be warmly greeted, we need to realize that the special currency term was more of a mention, it did not aim to define precise terminology. The debate about whether, cryptocurrency is really a currency remains open. In my opinion, cryptocurrency and the crypto industry, will need to be streamlined and regulated – before crypto gains official recognition as a currency. That is my opinion’.

That the crypto industry has drawn positive interest is no secret. Having said that, the industry needs to thoroughly introspect itself and look for venues of improvement. The IMF has on more than one occasion mentioned, the need to eliminate misuse of cryptocurrency. 

Let’s just add that, the IMF had around the same time made another statement that - the governments and the private crypto sector could work together to develop and implement CBDC. This statement in our opinion has equal if not more importance than, the ‘special currency’ mention.

 

GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token.  The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry. 

The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.  

The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform.  This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases. 

Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.  

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