IMF Chief Says CBDC Can Be Cheaper And Safer Than Crypto

The IMF chief Kristalina Georgieva says that central bank digital currencies can be cheaper and safer than cryptocurrencies and even be a safer option in the digital world so let’s read furhter in our latest cryptocurrency news today.

The Central Bank Digital Currencies are among the most discussed topics of discussion among the governing monetary bodies that are trying to find a way to reduce the influence of private cryptocurrencies but IMF’s Managing Director believes that each country has to follow its own rules for a CBDC because a universal type won’t work in every nation.

The reprots emerge daily of a new central bank that wants to join the CBDC trend and tries to capitalize on the digitization of money. The research by the IMF estimated that about 100 such organizations are working on launching their own version of the digital fiat currency and the institution even looked into a few other countries like Sweden, Bahamas China, and all reported advanced products that are close to becoming reality.

Given the different ways of these countries being ruled, the IMF Chief Kristalina Georgieva suggested that these experiences provided various lessons. For example, she believes that a “prudently” designed CBDC can provide resilience for the local financial networks while also reducing transaction costs. Georgieva claimed that such a product can even be safer than crypto which is unbacked and volatile however she didn’t mention the CBDCs can be highly centralized because they are operated by central banks unlike BTC and other assets that have no central point of authority. Georgieva noted:

“These are still early days for CBDCs, and we don’t quite know how far and how fast they will go.”

Aside from the countries mentioned above, other nations made huge developments in launching such products like India, Malaysia, South Korea, and others. While the US Federal Reserve explores the good things and the bad things of a CBDC but India’s prime minister thinks that the digital version of the country’s fiat currency will enhance and boost the economy. Russia’s second-richest man asserted that a CBDC can replace BTC and he even joined Georgieva in outlining BTC’s volatility as a hurdle.

Also as noted recently, An IMF counselor says cryptoization could bring risks for the emerging markets because they are facing immediate and acute risks as a result of replacing traditional currencies.