Even though cryptocurrencies don’t receive the warmest welcome globally, CBDCs are flourishing. Central Bank Digital Currencies (CBDCs) have received increased attention in recent months. Global regulators and policymakers have dedicated their efforts to exploring and evaluating this emerging technology.
Now, according to the latest reports, the International Monetary Fund (IMF) is developing a platform for central bank digital currencies. IMF Managing Director Kristalina Georgieva stated that the IMF is developing the platform to facilitate easier transactions between countries.
IMF working on a global CBDC platform
Georgieva told a conference in Morocco, “CBDCs should not be fragmented national propositions… To have more efficient and fairer transactions, we need systems that connect countries: we need interoperability.”
She stated that for this very reason, the IMF is working on a global CBDC platform. Additionally, the IMF has expressed its desire for central banks to reach a consensus on a unified regulatory framework for digital currencies, aiming to enable global interoperability. She suggested that the absence of such an agreement could potentially lead to a void that may be occupied by cryptocurrencies.
Speaking about the development of CBDCs around the globe, Georgieva mentioned that 114 central banks are at some stage in CBDC exploration. She also added that 10 of them are already crossing the finishing line. Additionally, she also stressed the necessity of CBDCs to be backed by assets.