Early evidence of the world’s first central bank digital currencies (CBDCs) suggests that there is no one-size-fits-all model for this type of currency, said the head of the International Monetary Fund.
Nearly 100 countries are eyeing CBDCs as an option, estimates the IMF, which published a study on Wednesday looking at six countries, including China, Sweden and the Bahamas, where digital money is already working or finding itself. at an advanced stage of testing.
In a speech about the report, IMF Managing Director Kristalina Georgieva said that what one could take away from these early experiences is that there are lessons to be learned.
If designed “prudently”, CBDCs can offer more resilience, make it easier for people to access banking services, and reduce the cost of moving money.
And they should also be safer compared to “unbacked cryptocurrencies that are inherently volatile” and the better managed and regulated “stablecoins”, often tied to a fiat currency.
“First, no one size fits all model,” Georgieva said.
Second, financial stability and privacy considerations are paramount to the design of CBDCs, although there also needs to be a balance between developments on the design and monetary policy fronts.
“These are still early days for CBDCs and we don’t know how far and how fast they will go,” Georgieva added.
Source: CNN Brasil
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