During a conference attended by African central banks in Morocco, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, unveiled the organization’s ambitious plans to develop a platform for central bank digital currencies (CBDCs). 

Recognizing the importance of global connectivity, Georgieva emphasized that CBDCs should not be limited to fragmented national initiatives, but rather facilitate seamless transactions between countries through interoperability.

Georgieva stated, “To achieve more efficient and equitable transactions, we require systems that connect nations – we need interoperability. For this reason, the IMF is diligently working on the concept of a global CBDC platform.”

The IMF aims to foster consensus among central banks regarding a unified regulatory framework for digital currencies, thereby enabling global interoperability. Failure to establish such a platform could result in a void that could potentially be filled by cryptocurrencies, cautioned Georgieva.

In contrast to decentralized cryptocurrencies, CBDCs are digital currencies under the control of central banks. Georgieva highlighted that 114 central banks are currently exploring CBDC implementation, with approximately 10 already in the advanced stages of development.

Georgieva also stressed that exclusively deploying CBDCs for domestic purposes would underutilize their potential. Moreover, CBDCs have the potential to advance financial inclusion and reduce the cost of remittances. Currently, the average cost of money transfers stands at 6.3%, amounting to a staggering $44 billion annually.

Backing CBDCs with assets was another crucial point raised by Georgieva. She acknowledged that while cryptocurrencies backed by assets present investment opportunities, those lacking such support tend to be speculative investments.