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The International Monetary Fund (IMF) is actively working on a global infrastructure that will facilitate the interaction of digital currencies issued by national central banks (CBDCs). The aim of this project is to mitigate the risks associated with the improper use of CBDCs, according to Reuters, The Gaze reports.
IMF Managing Director Kristalina Georgieva emphasizes that CBDCs should not be fragmented national initiatives. To achieve more efficient and fair transactions, it is necessary to establish systems that connect countries and ensure interoperability.
“CBDCs should not be fragmented national proposals… To have more efficient and fair transactions, we need systems that connect countries: we need interoperability,” stated Georgieva at a conference attended by central banks in Rabat, Morocco.
Due to the decline in cash usage and the growing interest in cryptocurrencies, many banking institutions are exploring the possibilities of national digital currencies issued by central banks. Out of the 14 central banks considering the implementation of national digital currencies, 10 are already prepared to enter the market with such initiatives.
However, Georgieva believes that many aspects of regulating and organizing CBDCs on a global scale still require resolution.
Currently, the IMF is working on creating a platform for token operations and developing legislation to control the movement of funds in digital currencies tied to the monetary units of participating countries.
The main concept is to establish a supranational financial system that transcends borders and enables seamless token transfers and conversions.
Overall, the IMF supports the plans of central banks regarding the introduction of CBDCs. However, this is just one of the issues that need to be addressed on a global scale in the field of digital economy.
Earlier, IMF Managing Director Kristalina Georgieva highlighted the risks associated with the introduction of retail CBDCs. She expressed concerns about insufficient research on the properties and consequences of such implementations.
