Industry Analysis

The World Bank has launched its own coin. Impact on the community

As many have predicted in the past and with many more expected before we see wider adoption, cryptocurrencies are going nowhere. With big institutions like JPMorgan launching their own crypto and now, the World Bank has launched its own coin in collaboration with the IMF, this only affirms these predictions.

The IMF and the World Bank have launched their own cryptocurrency called the Learning Coin. This cryptocurrency is said to be used by both organizations in oder to learn how the blockchain works.

It should be recalled that during the previous Davos summit, Christine Lagarde, the IMF managing director urged institutions to consider creating their own cryptocurrencies in order to stay relevant within the financial and payments systems.

Yielding to that advise, JPMorgan was very fast in responding and a few months later, they launched the JPM coin. Facebook is now also said to be on the way to launching FBcoin.

Though the institutions have made it clear that the coin is aimed for learning purposes and won’t have any monetary value, it doesn’t take a rocket scientist to understand where this is all heading.

As reported by the Financial Times, both institutions have also launched a private blockchain which is aimed at building a strong knowledge base around blockchain technology among staffs and institutions.

They have also launched a learning coin app where information from blogs can be shared and staff members can earn coins after achieving certain learning milestones.

Such developments within the crypto space though condemned by many will definitely boast trust and lead to mass adoption of cryptocurrencies given these are well respected financial institutions.

Also, should Facebook release its own coin, this could lead to over 30 million cryptocurrency users getting into the crypto space.

Other developments within the cryptocurrency space have seen many new startups come up with products that solve most of the pressing issues Bitcoin and other cryptocurrencies are facing such as Scalability, Volatility and transaction speed.

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Kinsley is an MSc student in Information Management and a blockchain consultant. He is a lover of big data with particular interests in disruptive technologies like blockchain technology and Artificial Intelligence.