IMF developing global CBDC platform.

The International Monetary Fund (IMF) has initiated the development of a global CBDC platform, as various countries compete to create their own central bank digital currencies. IMF Managing Director Kristalina Georgieva disclosed the project, stating the purpose of the initiative. She revealed that the aim of the global CBDC platform is to facilitate transactions between countries.

It is not surprising that many countries, including Japan and China, are working on their central bank digital currencies. More countries have also tested the use cases of their digital currencies, with official launches planned soon. Currently, about 114 central banks are exploring CBDC. As a result, the IMF aims to reshape the financial landscape through the global CBDC platform. Georgieva emphasized the need for a unified platform while speaking at a conference for African central banks in Morocco. She said:

“CBDCs should not be fragmented national propositions… To have more efficient and fairer transactions we need systems that connect countries: we need interoperability. For this reason at the IMF, we are working on the concept of a global CBDC platform.”

She further explained that the association wants central banks worldwide to have a unified regulatory framework for crypto assets to enable global interoperability. Georgieva added that failure to have a common framework would result in a vacuum that would be filled by cryptocurrencies. With more than 110 countries at the stage of CBDC exploration and about 10 almost at the finishing line, the executive believes that CBDCs would be underutilized if their capacity is limited to just domestic deployment.

• Binance UK shares a utility closet with 2,403 other companies in Suffolk.
• 31% of young Australians have cryptocurrency despite being cautious about risks, according to an ASX survey.
• PEPE is down 78% from May peaks, but the holder count is increasing.

IMF Begins Work on Global CBDC Platform

Meanwhile, the IMF is working on using the global CBDC platform to promote financial inclusion, among others. It will give access to individuals currently exempted from the financial system, as CBDC has the potential to make financial services more affordable and accessible. The IMF project on the global CBDC platform also targets enhancing the efficacy of payment systems. There would be faster and cheaper alternatives for cross-border transactions. In addition, CBDCs could also offer cheaper remittances as the average cost of money transfers, according to Georgieva, is 6.3%, totaling $44 billion annually.

Furthermore, the financial agency knows the risks attached to a deregulated crypto framework. There have been concerns regarding cyber threats, data privacy, and more if there is no proper design for the system. To reduce the risks or totally avoid them, there is a need for a standard interoperable system like the global CBDC platform IMF is working on.

The director of the IMF monetary and capital markets department, Tobias Adrian, also gave a comment.

“Our blueprint for a new class of platforms would enhance and ensure greater interoperability, efficiency, and safety in cross-border payments, as well as in domestic financial markets. The cost, sluggishness, and opacity of cross-border payments comes from limited infrastructure,” noted he.

Adrian also supports the idea of a global CBDC platform that will permit capital controls.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!