IMF Develops Common Law Framework For CBDCs For Safe Transactions
- The International Monetary Fund (IMF) is hard at work on a global infrastructure design that will assure CBDC settlement interoperability.
- The IMF wants central banks to agree on a single regulatory framework for digital currencies that would allow for worldwide interoperability.
According to Bloomberg, the International Monetary Fund (IMF) is developing a framework for central bank digital currencies (CDBCs) to facilitate cross-border transactions, IMF Managing Director Kristalina Georgieva stated on Monday.
According to Georgieva, new platforms for cross-border CBDCs might be more effective and secure while still allowing nations to conduct compliance checks and financial restrictions.
“For this reason, at the IMF, we are working on the concept of a global CBDC platform,” Georgieva told a conference attended by African central banks in Rabat, Morocco.
“CBDCs should not be fragmented national propositions… To have more efficient and fairer transactions we need systems that connect countries: we need interoperability,” she added.
Tobias Adrian, head of the IMF’s monetary and capital markets section, believes that a worldwide CBDC platform with capital restrictions may reduce payment costs – but such a scenario is far from crypto enthusiasts’ fantasy of decentralized financial systems.
“Our blueprint for a new class of platforms would enhance and ensure greater interoperability, efficiency, and safety in cross-border payments, as well as in domestic financial markets. The cost, sluggishness, and opacity of cross-border payments comes from limited infrastructure,” Adrian remarked in a lecture in Rabat, Morocco.
The International Monetary Fund (IMF) wants central banks to agree on a single regulatory framework for digital currencies that would allow for worldwide interoperability. Failing to agree on a single platform would leave a need that cryptocurrencies would certainly fill, according to Georgieva.
Several monetary policy organizations have been investigating the prospects of central-bank-issued digital currencies, owing to decreased usage of cash and increased interest in crypto assets.
10 of the 14 central banks considering issuing a national digital tender are “already crossing the finish line,” she said, adding that “a lot that is still not decided” on regulating and coordinating CBDCs.
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