At the Singapore FinTech Festival, International Monetary Fund (IMF) Managing Director Kristalina Georgieva encouraged countries to get ready for the application and utilization of central bank digital currency (CBDC).
Georgieva stated that most countries have a positive outlook on CBDCs, even though their wide-scale adoption is not expected to be seen for some time. Around 60% of these countries are currently researching this digital currency in some form.
During her speech, Georgieva pointed out the potential of CBDCs to replace traditional cash and increase resilience in advanced economies, as well as promote financial inclusion for underbanked areas. She also highlighted the importance of technological infrastructure and the protection of personal data, as well as the integration of artificial intelligence (AI) to enhance national digital currencies.
Georgieva also presented the IMF’s CBDC virtual handbook, which is a significant step in the discussion concerning the global adoption of digital currencies. She recognized the essential role of the Bank for International Settlements (BIS) in aiding the public sector’s experiments with digital money.
The IMF and BIS have been collaborating on crypto regulation, offering a C-RAM (crypto-risk assessment matrix) to help countries identify potential risks in the cryptocurrency industry. Recently, the G20 members unanimously approved a Synthesis Finance Ministers and Central Bank Governors Communique, demonstrating the increasing global commitment to shaping the future of digital finance.