The IMF recommends that central banks use environmentally friendly ways to create state-owned cryptocurrencies – Bits Media

International Monetary Fund (IMF) published the results of his study entitled “Digital currencies and energy consumption”.

IMF analysts tried
show the importance of environmentally friendly ways to develop digital currencies, including digital central bank currencies (CBDC). Experts have studied the energy consumption of crypto assets based on their individual elements, to evaluate the ideal mechanism for developing digital currencies of the Central Bank.

First of all, the global financial institution recommends abandoning distributed ledger applications (DLT), using the Proof-of-Work consensus mechanism (PoW). This operating model consumes a large amount of energy. The IMF cites the Bitcoin network as an example. (BTC), which, according to the authors of the study, consumes about 144 Tweadch per year.

At the same time, the organization noted high energy efficiency and assets, not using PoW, superior to even traditional financial systems. According to experts, Reduced power consumption is facilitated by energy savings on both core processing architectures, and on user payment instruments.

The IMF recommends that central banks, developing their own digital currencies, have a clear goal of being environmentally friendly. This means choosing the right development platforms, equipment and design options with the lowest carbon footprint. To achieve this, central banks will have to move away from outdated systems., tailored for traditional finance.

Earlier, IMF Managing Director Kristalina Georgieva called for the creation of a new public infrastructure for payment systems, including digital currencies. In her opinion, the international payment system needs modern equipment and new solutions.