During the last couple of months, numerous monetary regulatory agencies have turned their eyes towards the digital currency market. Now, reports indicate that the International Monetary Fund is advocating for central banks to introduce regulatory policies, while also encouraging innovation on the fiat market.

Based on this, the deputy director for the Monetary and Capital Markets Department of the IMF has outlined a couple of responses meant to lower the rivalry present between banks and digital currencies. With this in mind, he mentioned that: “Central banks should continue to strive to make fiat currencies better and more stable units of account.” To do so, central banks should introduce measures meant to discourage money laundering and terrorism financing, while also protecting consumers and taxing digital currency transactions.

​During the last couple of months, the popularity of both bitcoin and its underlying system, the blockchain, has grown considerably. With bitcoin prices rising above $1,100, and numerous financial institutions and companies showcasing their interest in blockchain technology, we’re without a doubt, about to experience a financial revolution.

However, regardless of whether you view bitcoin as the key to a free, but also utopian-type of economy, and blockchain technology as the key to achieving trust in the digital era, and online security, both systems are not outside the reach of government regulators throughout the world. Because of this aspect, it is always important to keep a close eye on the opinions of regulators.