Kristalina Georgieva says that crypto services and virtual currencies are mismatches for artistically planned central bank digital currencies (CBDCs). She said. “If CBDCs are planned wisely, they might probably offer more elasticity, security, greater accessibility, and lower costs than types of virtual currency.”
International Monetary Fund (IMF):
The International Monetary Fund (IMF) consists of 190 countries. IMF is an international monetary foundation that settled in Washington D.C. IMF is working to worldwide finance association, deals with the global exchange, advance financial development and diminish the poverty over the planet. Kristalina Georgieva is the managing director of the International Monetary Fund (IMF).
Central Bank Digital Currencies (CBDCs):
It’s a form of a digital currency issued by the national bank known as Central Bank Digital Currencies (CBDCs). The purpose of Central Bank Digital Currencies is to give secure business, transactions and more availability and financial stability. Central Bank Digital Currencies (CBDCs) make legal transactions to buy and sell goods.
IMF On Crypto and CBDCs:
Kristalina Georgieva, in her last week speaking at the Atlantic Council in Washington D.C., talks about the future of cash, cryptography money and central bank digital currencies (CBDCs).
She noticed: That central banks have decided to quit past theoretical conversations with computerized monetary forms, and therefore national banks are in the trial and error stage. These are very starting days for Central Bank Digital Currencies and we have no idea how far and quickly they will continue.
According to the head of IMF:
“If CBDCs are planned wisely, they might probably offer more elasticity, security, greater accessibility, and lower costs than types of virtual currency.”
The IMF chief said that approximately 100 countries are investing CBDCs monetary standards.
Kristalina Georgieva also publicized:
“The IMF genuinely feels this issue before providing technical assistance to many members. It’s a more important role to focus on advanced financial development and supports the standardization of CBDCs.”
Three lessons IMF worried about risk:
She shared the information gained from Central Bank Digital Currencies (CBDCs) from their digital money efforts.
She mentioned her three lessons:
First: She said, Every economy has a unique design. So, firstly national banks should design to focus on their conditions and needs.
Second: She mentioned that “The supreme design of CBDCs is Financial stability and protection contemplations. IMF Chief said that CBDCs regulations and limitations are foremost concerns in many nations.
Third: She focused on balancing points between improvements on the design side and strategy side.
Kristalina Georgieva also talked about Sweden Riksbank and Sand Dollar. Riksbank is the world’s oldest central bank in Sweden. In October 2020, the Bahamas launched the digital currency Sand Dollar. Many nations are investigating CBDCs effects on the economy, financial stability and availability.
Conclusion: No Match For Well-Designed CBDCs
She concludes that : The background of money takes a new step in digital currency. It’s important for countries to save their traditional financial systems and frameworks before exploring new different digital types of currency.