IMF supports stablecoins and CBDCs for remote Pacific countries
Date: 2024-03-30 Author: Oliver Abernathy Categories: IN WORLD
Problems of remote countries
The International Monetary Fund (IMF) has identified opportunities to improve the availability and quality of financial services in remote Pacific countries through central bank digital currencies (CBDCs) and stablecoins. Experts note that such countries face limited access to financial services, which leads to the persistence of poverty and inequality.
Digital revolution for development
The IMF is calling on distant countries to seize the opportunities provided by digital money and blockchain technologies to boost their own economies. There is a particular focus on CBDCs, but the fund is also looking at some stablecoins as an alternative.
Stablecoins as an alternative
The IMF report notes that Pacific countries may consider using private stablecoins such as Tether's USDT as an alternative to their own stablecoins. However, strict regulatory control is necessary to ensure their safety.
Despite recommending the use of stablecoins, the IMF encourages Pacific countries to explore and implement CBDCs. So far, only a few countries are exploring this possibility.
Meanwhile, the IMF cautions Oceania countries against adopting digital assets too quickly, acknowledging their effectiveness but urging caution. This is consistent with previous statements by IMF head Kristalina Georgieva about the role of cryptocurrencies as an investment tool.
