IMF plans CBDC platform

The International Monetary Fund (IMF) is in the process of creating a platform for central bank digital currencies (CBDCs) that would facilitate cross-border transactions. The IMF aims to establish a common regulatory framework for CBDCs, promoting interoperability among central banks. During a conference in Rabat, Morocco, Kristalina Georgieva, the managing director of the IMF, emphasised the importance of connecting countries for more efficient and equitable transactions. She stated that CBDCs should not be limited to national implementations but should instead work towards a global platform.

Georgieva highlighted the potential benefits of CBDCs, including cheaper remittances and increased financial inclusion. She also expressed concern that if central banks do not agree on a central platform, cryptocurrencies may fill the void. The IMF believes that by developing CBDCs solely for domestic use, countries are not fully utilising their capabilities. To address this, the IMF is actively working on the concept of a global CBDC platform.

While the IMF is advancing its plans for a CBDC platform, other central banks are also making progress in the field. For instance, the Bank of England is currently seeking public feedback on the design of a digital pound. This demonstrates the growing interest and engagement of central banks worldwide in exploring the possibilities offered by CBDCs. As digital currencies continue to evolve, international cooperation and the establishment of common frameworks will play a crucial role in shaping the future of cross-border transactions and financial systems.

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