during his introduction speech At the Singapore FinTech Festival, International Monetary Fund (IMF) Managing Director Kristalina Georgieva called on the public sector to “prepare to implement” central bank-issued digital currencies (CBDCs) and related payment platforms.
Georgieva expressed optimism about the worldwide implementation of CBDCs, but noted that “We have not yet reached the goal” and that there are still many uncertainties:
“Adoption of CBDCs is not yet imminent. But to date, about 60% of countries are experimenting with them in some way.”
Georgieva believes CBDCs can replace cash, provide resilience in developed economies and increase financial inclusion in unbanked communities. According to Georgieva, CBDCs will be able to coexist with “private money,” creating a “secure and low-cost alternative.”
Related: IMF Director Calls for Financial Inclusion through Digitalization
Georgieva also emphasized the importance of technological infrastructure in CBDC projects, the protection of personal data and even the possible role of artificial intelligence (AI) in strengthening national digital currencies. He placed particular emphasis on supporting cross-border payments:
“To the extent that CBDCs are used, they will need to be designed to facilitate cross-border payments that are currently expensive, slow and few have access to them. Again, we need to undertake this work today so we don’t have to backtrack tomorrow.” ”
IMF director announced introduced The organization’s virtual CBDC handbook highlights the Bank for International Settlements’ (BIS) role in the public sector’s digital currency trial.
The IMF has been actively analyzing the necessary crypto regulations lately. On September 29, it proposed a crypto risk assessment matrix for countries to identify indicators and triggers of potential risks in the sector.
IMF summary document prepared in cooperation with the Financial Stability Board was announced accepted unanimously It was held by G20 finance ministers and central bank governors in October.
Translation by Walter Rizzo