International Monetary Fund (IMF) Managing Director Kristalina Georgieva has called for a new public infrastructure for payment systems, including digital currencies.
Kristalina Georgieva spoke with an online presentation on “Confronting Fragmentation: How to Modernize the International Payment System”. The head of the IMF said that in today’s conditions, “the world must think like a mountaineer, using the most modern equipment, adapting to the existing terrain and relying on its team.”
She added that countries need to work together to solve infrastructure challenges and suggested creating a public payment system based on digital platforms. According to her, this will help counter the fragmentation of the international monetary system. The new platform will facilitate the “connection” of different forms of money that countries will use and legally support, making cross-border payments more efficient, secure and inclusive.
“It will be a new way of connecting people, markets and economies in the digital world, which includes deposits in commercial banks, Central Bank digital currency and even some stablecoins – if they are well designed and regulated,” said Georgieva.
At the same time, the head of the IMF noted that the higher efficiency of the new payment system could entail risks: from a stronger “infection” of the financial market and the effects of inadequate assessment, to sudden reversals in capital flows. The danger of replacing the national currency with digital surrogates is also growing. For example, as in developing countries, where business entities prefer to use foreign currency for transactions and savings. And as digital assets become more accessible, the risk of substitution of the national currency increases significantly.
“From the very beginning, digital platforms must be calibrated according to the needs and political goals of a particular country. They should include appropriate risk mitigation measures,” said Kristalina Georgieva.
Recently, the Nigerian Securities and Exchange Commission (SEC) changed the procedure for registering digital asset platforms (DAOP), service providers (VASP) and exchanges offering digital assets.
Source: Bits
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