CBDCs (Central Bank Digital Currencies), long confined to an exploratory phase, are becoming a reality that will be imposed on citizens around the world. The IMF, in its role as guardian of the monetary temple, has supported this modernization of the payment infrastructure from the outset. Do not hesitate to make proposals to promote and improve the efficiency of this upcoming future. He therefore undertakes to build a global platform dedicated to CBDCs to remove constraints imposed by national borders.
The IMF calls for a global platform for CBDCs
Many nations are in the process of issuing a digital version of their sovereign currency. Specifically, second the tracker of the Atlantic Council, 11 countries have already taken the plunge and 114 countries, representing more than 95% of global GDP, are considering launching a CBDC. Faced with this massive movement, the IMF, through the voice of its Director General, Kristalina Georgieva is concerned about isolated initiatives and urges countries to adopt common standards..
CBDCs must not be fragmented national propositions… If countries develop CBDCs only for national use, they underutilize their capacity.
Kristalina Georgieva, Director General of the IMF, quoted in Bloomberg.
Speaking at a conference in Morocco attended by several African central banks, Kristalina Georgieva underlined the importance of the need to build interconnected and interoperable systems on a global scale, to achieve the goal of more efficient and fair transactions, which should stimulate economic growth and financial inclusion..
It is true that, so far, projects aimed at creating CBDCs seem to have neglected this aspect, contenting themselves, where they exist, with confining cross-border payments 2.0 to a handful of neighboring countries.
The only option for the IMF to counter the expansion of cryptocurrencies
Only China, which is very active in promoting its digital yuan, is showing excessive ambition in this area, having already started laying the groundwork for an international extension of its monetary flagship.
And we know that his authoritarian model is not without interest for the IMF, which is no longer hiding it either. Just as he does not hide his aversion to cryptocurrencies. We recall his exhortation to El Salvador to abandon Bitcoin as fiat currency, as well as his aid to Argentina conditional on an anti-crypto clause. Recently, the institution even considered banning some to "protect financial stability."
Kristalina Georgieva, who never misses an opportunity to rock the cryptocurrency specter, was no exception to the rule in her latest speech. Indeed, she did, he said that if central banks do not agree on common standards for CBDCs, there is a risk that individuals will turn to cryptocurrencies on a larger scale.. This is enough to motivate reluctant central bankers and encourage cooperation to impose a surveillance currency on citizens. An instrument which, it should be remembered, does not receive unanimous consent even within the political class, particularly in the United States, where a growing number of skeptics are alarmed by the democratic challenges posed by these monetary UFOs.
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