Emerging Technology-Related Issues in Finance and the IMF—A Stocktaking
IEO Background Paper No. BP/18-02/07
Posted: 24 Feb 2019
Date Written: December 14, 2018
This paper provides a stocktaking of the IMF’s work on three emerging technology-related issues in finance: (i) cyber risk and cyber security for financial systems; (ii) technology-driven innovation in the provision of financial services (“fintech”); and (iii) digital currencies or cryptocurrencies. Because these issues are relatively new, still evolving, and their economic impact is uncertain, it would be premature to try to assess the quality and impact of the Fund’s engagement and policy advice. Instead, this paper casts a wide net and takes stock of a broad range of relevant Fund activities. The stocktaking shows that the IMF has been paying increasing attention to technology-related issues in finance, both from an analytical perspective and as a topic for bilateral surveillance. This engagement is in its early stages and still evolving. It has so far been more visible on fintech and digital currencies than on cyber security issues. At the same time, the Fund has used its convening power to raise awareness of these issues — particularly cyber risk — and facilitate knowledge-sharing among developing and emerging market member jurisdictions. Most recently, the IMF has worked together with the World Bank to develop the Bali Fintech Agenda, a framework for the consideration of high-level issues in these areas by the international community and individual member countries. Looking forward, the challenge for the IMF is to continue working closely with member countries and relevant international bodies in order to best respond to the membership’s needs in this area.
Keywords: IMF, financial stability, cryptocurrencies, fintech, cyber risk
JEL Classification: G20, G23, G28
Suggested Citation: Suggested Citation