IMF Releases Digital Bank & Decentralized Finance Report

The International Monetary Fund (IMF) released the Global Financial Stability Report in April, which not only analyzed at great length the impact of the rapid development of financial technology on financial stability during the epidemic but also detailed the development of digital banking and cryptocurrency featured by decentralized finance (DeFi).

The report notes that notwithstanding a systemic challenge to traditional banks posed by the development of digital banks, they are currently experiencing shortfalls in earnings, thereby having high risk. DeFi was a fast-growing sector in the past two years that provided more efficient financial services and investment opportunities.

However, due to the uncertainty of relevant laws, unregulated DeFi gives rise to a risk of the market, liquidity, and cyber. The report highlights that the DeFi regulation focuses on the oversight of stablecoin issuers and centralized exchanges due to the absence of a centralized regulated entity.

Compared to the study sample in the IMF report, Himalaya Exchange is far ahead of the other rivals in terms of both digital banking and cryptocurrency finance. The well-funded Himalaya Exchange, with 20% gold reserves and 100% stablecoin reserve denominated in U.S. dollars, has the minimal market and liquidity risk and zero risk of a run. In addition, its military-grade security system effectively prevents cyberattacks.

Himalaya Exchange has a centralized accountability system, strict KYC requirement as well as measures against money laundering and cooperates actively with governments to ensure the legal circulation of HCoin and Dollar worldwide. In addition, HPay, which creates an enormous ecosystem linked with brick-and-mortar stores, takes advantage of its considerable potential for transactions and circulation to offer solid guarantees for Himalaya Exchange.