IMF: Central bank digital currencies will make cross-border payments more convenient
Date: 2024-06-24 Author: Gabriel Deangelo Categories: IN WORLD
The International Monetary Fund (IMF) has published a report arguing that central bank digital currencies (CBDCs) could significantly improve cross-border payments. The report highlights that two-thirds of countries in the Middle East and Central Asia are already exploring the possibility of introducing national digital currencies.
Status of CBDC development in different countries
Countries such as Bahrain, Georgia, Saudi Arabia and the UAE have already reached the proof-of-concept stage of their CBDCs. The Republic of Kazakhstan is at a more advanced stage and is close to completing the implementation of the digital tenge project.
Advantages of digital currencies
The IMF believes that central bank digital currencies can significantly expand access to financial services and reduce their costs. This will be possible by eliminating intermediaries and stimulating competition.
“The accelerating exploration of CBDCs in oil-exporting countries comes as classic cross-border payments face challenges such as varying data formats and regional regulations, as well as complex compliance checks,” the IMF report notes.
The fund’s report emphasizes that for the successful implementation of CBDC, it is important to choose the right functionality, eliminate financial illiteracy of the population and increase confidence in financial institutions. The process of introducing digital currencies will be long and complex, and central banks should exercise caution.
Cautions and Recommendations
IMF experts warn that the implementation of CBDC requires a careful and gradual approach. It is necessary to take into account all possible risks and problems that may arise during the implementation process.
Previously, IMF analysts noted that residents of countries with restrictive financial regulations are increasingly turning to Bitcoin to safely carry out cross-border transactions. This demonstrates the growing need for secure and efficient financial solutions that can be provided through central bank digital currencies.
Thus, the introduction of CBDC could be an important step in modernizing the financial system and improving international payment processes.
