The IMF wields enormous influence over nation-level financing worldwide. This is evident not only from the tentacles of its financing apparatus that can make or break the national reserves of entire countries, but also from its role as a potential problem-solver in developing countries, or countries with political issues or imminent military conflict. This level of influence is not without the cost of frequent political protest.
What is the IMF?The IMF’s primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. (source: https://www.imf.org/en/About )
Sound like it’s in Ripple’s wheelhouse? It should. Ripple’s goal is to make XRP “the …. institutional standard for digital value transfer globally.” (source: Miguel Vias @ Consensus 2017 *https://www.youtube.com/watch?v=aiNDDWZs0b4*)
What does the IMF Do?According to their own information, they do three things:
Surveillance Lending Capacity Development
Here’s what “Capacity Development” is defined as:
Quote IMF capacity development—technical assistance and training—helps member countries design and implement economic policies that foster stability and growth by strengthening their institutional capacity and skills. The IMF seeks to build on synergies between technical assistance and training to maximize their effectiveness.
Quote The IMF’s CD (Capacity Development) work focuses on building effective policies and institutions and strengthening related human capacities. This includes, for example, helping countries raise public revenues, modernize banking systems, develop strong legal frameworks, enhance the reporting of macroeconomic and financial statistics, and improve economic analysis and forecasting. The IMF works with government institutions, such as finance ministries and central banks, through hands-on advice, peer-learning workshops, and policy‑oriented training.
Again, this is their own public information, freely available (source: http://www.imf.org/external/np/exr/facts/tech.htm )
Ready for the Twist?
Quote Capacity Development is an important complement to the IMF’s other core mandates of surveillance and lending. For example, working directly with member governments to help improve their policies and processes through CD helps increase the understanding and usefulness of IMF policy advice in the country, keeps the institution up-to-date on innovations and risks to the global economy, and helps address crisis-related challenges and spillovers. On the other hand, the IMF’s surveillance and lending work may identify areas in which CD activities can have the biggest impact in a country. For instance, the IMF is actively involved in providing CD to boost inclusive growth and financial inclusion, and reduce external vulnerabilities.
Do you see where I’m going yet?So, let’s take the final step. What were their latest actions specifically with regards to Ripple and other financial technology companies? On March 15, 2017, the IMF Managing Director, Christine Lagarde, formed an advisory group. It’s purpose:
Quote The Group is composed of highly-experienced and respected leaders in the field of finance and technology and includes industry pioneers, regulators, lawyers and academics.The Group will work closely with the IMF’s Interdepartmental Working Group on Finance and Technology to study the economic and regulatory implications of developments in the area of finance and technology.
So if you don’t already know, guess who is a member of that advisory group? Our own Chris Larsen! (Executive Chairman of Ripple)
Remember one item: No representative of any other crypto-currency was invited to participate. ONLY XRP. The other financial technology group members are a potpourri of new fintech innovators.
The IMF wields enormous influence on the 189 member nations, and exists with their support, and at their behest. But it also fulfills its mission to enhance those member nations’ technological capabilities and to standardize the way in which financial information is communicated. In addition, it is the IMF’s best interests to embrace new technological innovations such as ILP, payment channels, and the RCL’s method of conducting ForEx exchanges and settlement in seconds instead of days. These Ripple innovations are completely in-line with the IMF’s goals for capacity development.
SWIFT might act in a protectionist manner to enable it’s member banks to continue to “hold” our money in float for days, but the IMF has no patience for protectionist practices that inhibit its global goal of capacity development.
Are you starting to believe?
Edited 12 minutes ago by Hodor