IMF Working on Global Central Bank Digital Currency Platform
The International Monetary Fund has unveiled plans to create a global platform for the implementation of central bank digital currencies, or CBDCs, but cautioned that if not designed well, they could cause considerable risks for the financial system and economies.
The Washington-based fund recognised the benefits of having a standardised CBDC platform that would help bridge the financial gap, IMF managing director Kristalina Georgieva said in prepared remarks for an African central banks conference in Rabat, Morocco.
“CBDCs could help to increase inclusion by giving more people access to financial services, and at a lower cost, strengthen the resilience and efficiency of payment systems and make cross-border payments and remittances cheaper and quicker,” she said.
“However, if poorly designed, CBDCs could also lead to financial stability risks, data privacy and legal challenges, financial integrity and cyber risks, and central bank operational risks.”
