Kristalina Georgieva, the IMF’s Managing Director, spoke at the Atlantic Council in Washington, D.C. last week about the future of money, cryptocurrency, and central bank digital currencies (CBDCs).
She observed that central banks have progressed beyond conceptual debates about digital currencies and are now experimenting with them, but that CBDCs are still in their infancy, and that no one knows how far or how fast they will go. Around 100 nations are experimenting with central bank digital currencies, according to the IMF’s chief. She noted the Bahamas’ Sand Dollar, Sweden’s Riksbank’s proof-of-concept, and China’s e-CNY in her talks. She also noted that the Federal Reserve of the United States published a report on CBDCs last month.
Not only that, but she then went on to discuss some key takeaways from other central banks’ digital currency initiatives:
“There is no uniform rationale for CBDCs since each economy is different,” she said. As a result, central banks should create programmes that are tailored to their individual circumstances and needs.”
Second, she emphasised the importance of “financial stability and privacy considerations in the creation of CBDCs.” “Privacy concerns are a possible deal-breaker in many nations when it comes to CBDC legislation and adoption,” the IMF Chief said. As a result, governments must strike the proper balance.”
Third, she emphasised the importance of striking a “balance between design and policy advances.”
Oh god, so many currencies, so much confusion. Why don’t you visit CryptoShrypto to get rid of your confusion?
Related: Distributed ledger architecture has demerits: US CBDC research
