The International Monetary Fund (IMF) is developing a global platform for central bank digital currencies (CBDCs) to enable cross-border transactions between countries.
The International Monetary Fund (IMF) is developing a global platform for central bank digital currencies (CBDCs) to enable cross-border transactions between countries.
CBDCs should not be "fragmented national propositions," according to Kristalina Georgieva, Managing Director of the IMF, and systems that link nations are necessary for efficient and equitable transactions. The IMF wants central banks to agree on a shared regulatory framework for digital currencies that will enable worldwide interoperability as it develops a model for a global CBDC platform.
At a conference attended by African central banks in Rabat, Morocco, Georgieva said that failure to agree on a common platform would create a “vacuum” that would likely be filled by cryptocurrencies. CBDCs could also help promote financial inclusion and make remittances cheaper, added Georgieva. She noted that the average cost of sending money internationally is 6.3%, totalling $44 billion annually.
According to the Atlantic Council, 114 nations, or more than 95% of the world’s GDP, are considering a CBDC, with 60 of those nations being at an advanced stage of research, pilot, or launch.
