At its 2024 Annual Meeting on November 22-23, the International Financial Forum (IFF), a high-level permanent dialogue mechanism and multilateral cooperation institution in the global financial field, will release a new report , providing valuable insights for policy makers, regulatory agencies, and industry participants.

The "IFF Global Digital Currency Development Report 2024" provides a comprehensive and in-depth analysis of the digital currency industry from the perspectives of its development history, impact on the global economic system, risks and challenges of digital currency development, and regulatory systems in various countries.

Looking ahead, the development of the digital currency industry has both advantages and disadvantages. The digital economy and emerging technologies have promoted its sustainable development, but the regulatory uncertainty of private digital currencies and the competition among countries for the dominant position of currency internationalization have brought uncertain factors, requiring strengthened international coordination and cooperation, according to the report.

By in-depth research on the development history of digital currency, the report analyzes digital currency from the perspectives of history and functional utility, and points out that advances in digital technology, changes in production methods and the background of globalization are key factors for its development.

On the user side, digital currency facilitates online payments, protects privacy, attracts investors, supports cross-border payments and purchases of digital services, and is an important infrastructure in the Web3.0 ecosystem. At the macro level, digital currency reshapes the global monetary system, influences the international financial architecture, and provides an avoidance scheme for countries subject to financial sanctions, the report says.

The report conducts a country-by-country comparative analysis of private digital currency, central bank digital currency and digital assets, and discusses integration with emerging digital technologies. The report analyzes the development status of Bitcoin, Ethereum and stablecoins, as well as differences in regulatory policies among countries. In particular, it examines the potential impact of stablecoin regulatory developments in the United States and Hong Kong, China on the internationalization of the RMB. The central bank digital currency section discusses mainstream development motives, and the digital asset section introduces the characteristics of DeFi protocols and differences in adoption among countries.

The report also analyzes the impact of private digital currency and central bank digital currency on currency internationalization, pointing out that the anonymous nature of private digital currency is conducive to cross-border illegal transactions, while central bank digital currency helps promote the internationalization of sovereign currency. At the same time, the report also discusses the impact of digital currency on resident consumption and cross-border trade settlement.

In terms of risks, the report summarizes four major risks: technical security and privacy leakage, market volatility and speculation, legal compliance and regulatory uncertainty, and scalability. Finally, it conducts a comparative analysis of the judicial definitions of digital currency in China and the United States, illegal transaction supervision, and the global Bitcoin regulatory system.

Looking to the future, the global digital currency industry will continue to undergo transformation and expansion. Advances in digital technology and globalization drive innovative applications. The introduction of central bank digital currencies will accelerate the internationalization of sovereign currencies, form a new pattern, and improve the efficiency of cross-border payments and the inclusiveness and security of the financial system. Private digital currencies and stablecoins will play an important role in payments, investments, and cross-border transactions. However, development is accompanied by challenges such as technical security and privacy protection. With the improvement of supervision and the strengthening of global cooperation, risk management will improve. The integration of digital currency and emerging technologies may lead a technological revolution and affect the digital transformation of the economy and society.

The report believes that in the future, there will be a long-term coexistence of native tokens, stablecoins, and central bank digital currencies. Major economies should actively develop stablecoins or central bank digital currencies to expand the payment proportion of their own currencies in the digital world. From the perspective of regulatory policies, countries should adopt guiding rather than prohibitive policies to protect the needs of investors and combat the needs of illegal and criminal activities. Regulatory authorities should use big data and artificial intelligence to monitor the flow of private digital currency and cooperate with exchanges to achieve "real-name supervision in the background".

Register for the IFF 2024 Annual Meeting at https://www.bagevent.com/event/ticket/8928432.