IMF boss says that digital currencies of the central bank are reliable, Bitcoin is difficult to imagine-finance
IMF boss says that digital currencies of the central bank are reliable, Bitcoin is difficult to imagine-finance
IMF boss Georgieva describes the most important topics for political decision-makers who examine CBDCs
Among the members of the International Monetary Fund (IMF), 110 countries examine the digital currencies of the central banks ( CBDCS ), announced the chairman and managing director of the fund, Kristalina Georgieva, at an event at the University of Bocconi in Italy. In a long -distance discussion with the audience, she found that the biggest challenge for the currency authorities is now to ensure the interoperability of these currencies.
According to Georgieva, an important consideration is whether state -supported digital currencies can serve as a medium -sized exchange from the public, Reuters reported on Tuesday. Other questions that political decision -makers have to answer are whether CBDCs can contribute to the stability of the inland economy and how they would fit into international regulatory framework that was introduced by organizations such as the Bank for International Payment Compensation (BIZ).
The up to innovation Hub leads several projects to test the use of state digital currencies in international transactions, such as z cooperation between the Reserve Bank of Australia, the Monetary Authority of Singapore and The South African Reserve Bank. This also includes joint studies by China, Hong Kong, Thailand and the United Arab Emirates as well as a wholesale cbdc examination carried out by the Banque de France.
In terms of cooperation between international financial organizations and national currency authorities in relation to CBDCs, Kristalina Georgieva further explained:
The boss of the IMF emphasized that digital currencies issued by central banks regarded the most reliable form of digital money while noticing that it was difficult for her to imagine cryptocurrencies as money. "DE-FACTO-Assets" like Bitcoin are not covered by assets that keep their value stable and increase and fall strongly, said Georgieva and insisted on it:
In the history of money, it is difficult to consider it as money.
In her speech at the Italian academic event, the IMF boss also spoke about the efforts of dealing with the challenges through the spread of COVID-19. Crystalina Georgieva found that the old continent is now better prepared to avoid another debt crisis like that with Greece after the last global financial crisis. However, she emphasized that the governments have to plan their course carefully if they go on to medium -term budget consolidation so that they can reduce the debt burden in connection with pandemic.
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