- Kristalina Georgieva, the Managing Director of IMF recently expressed the IMF’s beliefs of CDBCs being better than Cryptocurrency.
- The International Monetary Fund is supporting around a hundred countries that are exploring the CBDCs actively.
- IMF is among the top critics of Digital assets and often warns about their potential risks.
The International Monetary Fund (IMF), often expresses its thoughts on cryptocurrencies and is quite vocal about them. And now it recently got revealed that it thinks the Central Bank Digital Currency(CBDC) is better than cryptocurrency.
According to the managing director of IMF, Kristalina Georgieva highlights in a statement that CBDCs are witnessing the move from discussions to actual experimentations. And that Central Bank Digital Currencies are still at an early stage and that it’s unknown how far they might go. But the Central Banks are gearing up for new technologies and what lies ahead of them.
She further underlines that the International Monetary Fund is supporting around a hundred countries that are exploring the CBDCs actively.
If CBDCs are created and designed wisely they have the ability to offer more safety, availability, resilience, and lower cost than the private forms of virtual money. And the well-designed CBDC can surpass the volatile unbacked crypto-assets and even the managed and regulated stablecoins that can’t match them.
Previously, the International Monetary Fund published a paper in which it examined six various CBDC projects. Also last month the U.S. Federal Reserve delivered a report about CDBCs recently which signified the CBDCs to be an innovation in the financial system but was also cautious about the problems it might pose.
The International Monetary Fund is not a fan of Digital assets and is quite vocal about the concerns the asset class raises. It has given warnings regarding their potential risks to consumer protection and financial stability. IT believes the crypto industry can take over the market share of the banking sector. The institution also favours synchronised regulations for the crypto industry globally. It also suggested El Salvador remove Bitcoin as a legal tender.
CBDCs are still something that the central banks are analysing, it is to forward to whether they prove to be a better option than any other mode of currency. Similar to cryptocurrency, some are in favour of them whereas some are sceptical about them.
