Kristalina Georgieva, the managing director of the International Monetary Fund (IMF) says that cryptocurrency and stable coins are no match for well-designed central bank digital currencies (CBDCs).
She
revealed this while talking at the Atlantic Council in Washington D.C. concerning the future of money, cryptocurrency, and Central Bank Digital Currencies (CBDCs).
Taking note that central banks have moved past reasonable conversations concerning digital currencies and are in the trial and error stage, she noticed: "These are still early days for CBDCs and we don't exactly have the foggiest idea how far and how quickly they will go."
In any case, the IMF boss said:
"If CBDCs are designed prudently, they can potentially offer more resilience, more safety, greater availability, and lower costs than private forms of cryptocurrency."
She proceeded: "That is the situation when contrasted with unbacked crypto resources that are innately unpredictable. And, surprisingly, the better overseen and directed stablecoins may not be all in all a match against a stable and well‑designed central bank digital currency"
The IMF manager said that around 100 nations are exploring central bank digital currency (CBDCs).
She referenced the Sand Dollar in the Bahamas, a proof-of-idea by Sweden's Riksbank, and the e-CNY in China. Likewise, she perceived that the U.S. Central bank reported on CBDCs last month.
Georgieva uncovered:
"The IMF is profoundly associated with this issue, including through giving specialized help to numerous individuals. A significant job for the Fund is to advance the trade of involvement and backing the interoperability of CBDCs."
Some of the lessons learned from central bank digital currencies include:
Firstly, "There is no general case for CBDCs because every economy is unique … So, central banks should fit designs to their particular conditions and needs."
Also, she focused on that "Monetary strength and security contemplations are fundamental to the plan of CBDCs." The IMF Chief noted, "In numerous nations, protection concerns are a potential major issue with regards to CBDC regulation and reception. So policymakers must get the blend right."
Thirdly, she focused on the "balance between advancements on the blueprint front and on the strategy front."
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