International Monetary Fund Managing Director Kristalina Georgieva stated that the IMF is “working hard” on a global central bank digital currency platform.
The International Monetary Fund (IMF) is “working hard” on a “global CBDC (Central Bank Digital Currency) platform,” the IMF managing director announced Monday.
“If we are to be successful, CBDCs could not be fragmented national propositions,” Kristalina Georgieva said during a policy roundtable discussion with Bank Al-Maghrib in Rabat, Morocco on CBDCs.
“To have transactions more efficient and fairer, we need systems that connect countries. In other words, we need interoperability,” she said in reference to a global CBDC.
“For this reason, at the IMF we are working hard on the concept of a global CBDC platform to trade and to manage risks,” she continued.
Georgieva touted CBDCs as “giving more people access to financial services, and at a lower cost, enhancing payment system “efficiency” and “resilience,” and making cross-border payments “cheaper and quicker” while reducing the number of needed intermediaries.
She cautioned, however, that “easy access to foreign CBDCs could lead to risks of currency substitution and capital flow volatility,” suggesting that a global CBDC would enhance “international economic stability,” a goal the IMF has tasked itself with promoting, she noted in a press release statement on the roundtable discussion.
Asked whether she thought “economic integration” could happen without CBDCs, Georgieva admitted that progress on the matter could be made either way but said, without delving into specifics, that if CBDCs are only used domestically, “we are under-utilizing their capacity.”
According to a recent analysis from the Cato Institute assessment report published on Tuesday, Central Bank Digital Currencies are a foundational threat to America’s economic systems.