The international monetary Fund (IMF) and the world Bank estimated the global impact of the blockchain and Finance in General, and made recommendations to the international community.
Bali Fintech Agenda, released at the end of the annual meeting associations highlights the problems of such revolutionary technologies as distributed registers and smart contracts. The document consisting of 12 points, is a guidance for governments that will help them understand how to act in specific circumstances.
“The country requires better access to financial markets,” — said the President of the World Bank Group Jim young Kim (President Jim Yong Kim) the statement in respect of the document. “Bali Fintech Agenda is a framework for supporting the sustainable development goals, particularly in countries with low income, where low levels of access to financial services”.
IMF chief Christine Lagarde (Christine Lagarde) supported this point of view. She noted that approximately 1.7 billion people do not have access to the financial services sector. Lagarde said:
“The Finance industry can have serious social and economic consequences for them and people around the world as a whole. All countries are trying to take advantage of these benefits while minimizing the risks”.
As stated in the press release, the IMF, the 189 member countries should pay special attention to the following objectives.
To consider Finance
This is especially true of countries with low income, small States and countries with insufficient level of provision of services. For them, FINTECH can accelerate and expand access to financial services, deepening financial markets, improving cross-border payments and the operation of the funds transfer.
To introduce new technologies to improve financial services
With the assistance of telecommunications and digital infrastructure of the country will be able to contribute to the development of open and free access to financial services and to provide a favorable political climate.
To increase competition and commitment to open, free and competitive markets
The implementation of policies aimed at addressing the risks associated with market concentration, and the transition to standardization, interchangeability and transparent access to key infrastructures, to ensure equal conditions, while promoting innovation and broad consumer choice and access to high-quality financial services.
To support FINTECH for access to financial services and financial markets development
Providing countries with the opportunity to use a promising new path of economic and financial development promotes economic growth and alleviates poverty. Achieving this goal entails the inclusion of Finance in the efforts of financial and digital literacy, “while encouraging the exchange of knowledge between players in the public and private sectors, civil society and other stakeholders.”
To follow developments for a better understanding of the changing financial system
The exchange of information and data contribute to improving the quality of tracking new developments and includes maintaining a dialogue with the current industry leaders and innovators as a means of identifying new opportunities and risks and “promote the timely generation of retaliatory legislative measures”.
To adapt the regulatory framework for the orderly development and stability of the financial system
Since there are problems around developing financial technology, regulators and legislators must be willing to change and adapt the regulatory framework to a certain extent based on risk. “At the national level may require comprehensive policy responses, based on guidance provided by authorities on setting standards.”
To protect the integrity of financial systems
To eliminate the risks associated with the criminal abuse of pineham, through the use of technologies that strengthen the observance of rules related to combating money laundering and the financing of terrorism.
To modernize the legal framework
A legal framework that is unable to keep up with financial technological innovation and developing global markets, undermine the overall credibility and reliability of financial products and services. It is important to ensure a legal framework with clear and predictable rules.
To ensure the stability of the domestic monetary and financial systems
While FINTECH can help Central banks to improve their services, including potential emissions of digital currencies, and expand access to and increase the resilience of payment services, the monetary policy should ensure financial stability and even, if necessary, to expand measures of social support.
To develop reliable financial and informational infrastructure to support Finance
The integrity of the financial system should support resilience to cyber attacks and other criminal infiltrations. Reliable infrastructure development includes effects that go beyond the financial sector and are moving into a digital economy as a whole. These include issues of ownership of data, protection and privacy, cybersecurity, operational risk, and consumer protection.
To promote international cooperation and exchange of information
International cooperation helps to ensure effective management and development opportunities and limit the risks that may arise as a result of differences in the regulatory framework. “The IMF and the world Bank want to help in the promotion of global dialogue and exchange of information” with the aim of achieving a global consensus.
Strengthen the collective oversight of international financial and monetary system
As FINTECH continues to blur financial boundaries and enhances the relationship between countries, spillovers and volatility of capital flows, the ability to influence the balance of risk to global financial security become more dangerous. “The IMF and the world Bank could help improve collective oversight and to help member countries to establish cooperation with other international bodies.”