IMF says CBDCs can promote financial inclusion
The International Monetary Fund believes that CBDCs, central bank digital currencies, can contribute to financial inclusion. The less favorable side is that it can replace fiat money
The speech by the director of the International Monetary Fund, Kristalina Georgieva, during the inauguration of the FinTech Festival in Singapore, was an exhortation to public institutions to prepare for the implementation of CBDCs as an instrument of financial inclusion.
The European official was optimistic about the creation and circulation of central bank digital currencies, although she noted that the trend is still in its initial stage.
In his opinion, few countries have made progress in creating a CBDC. Georgieva estimates that 60 % of nations are in the exploratory phase.
The IMF president maintains her commitment to CBDCs as an instrument for financial inclusion for unbanked populations, but weighs the fact that they could be the final blow for fiat money.
In her speech, he noted that “CBDCs can coexist with private money, being their safe and low-cost alternative.”
Likewise, he stressed the importance of having the necessary technologies to develop CBDCs, as well as investing in security measures to safeguard user data, in addition to the evaluation of risks related to cryptocurrencies and stablecoins.
The FinTech Festival was the setting for the presentation of the IMF’s CBDC virtual manual, by its director, who also addressed the importance of the Bank for International Settlements (BIS) in the framework of public sector digital money projects.
M.Pino
Source: cointelegraph
(Reference image source: Arthur Mazi, Unsplash)
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