The Managing Director of the International Monetary Fund has called on states to continue testing central bank digital currencies (CBDCs) and associated payment platforms.

Kristalina Georgieva, speaking at the Singapore FinTech Festival, said that government-owned stablecoins have the potential to replace cash, ensure the stability of the financial system in advanced economies and improve financial inclusion in countries where many residents do not have a bank account. According to Georgieva, CBDCs can become a secure and inexpensive alternative to private digital assets.

The Managing Director of the IMF is confident that the widespread introduction of digital currencies by the Central Bank will not happen soon. However, at least 60% of countries are now exploring the possibilities of digital currencies through research and pilot projects.

Georgieva did not rule out the possibility of using artificial intelligence (AI) to improve cross-border payments and settlements using digital currencies of the Central Bank.

“CBDCs should simplify cross-border payments, which are currently expensive, slow and not accessible to everyone. We must start working today so that tomorrow we don’t have to return to the same conversation,” said Kristalina Georgieva.

However, cryptocurrency brokerage Copper disagrees that central bank digital currencies are suitable for everyday use. This is due to the fragmented approach of central banks of different countries to creating their own digital currencies, which hinders the creation of a common infrastructure.