The International Monetary Fund (IMF) considers central bank digital currencies (CBDCs) to be a better bet than crypto.
CBDCs gained momentum after moving from conceptual discussions to real tests, IMF chief Kristalina Georgieva said in a new statement.
“It is still early for CBDC. We don’t know exactly how far and how fast we can go. What we do know is that central banks are building the capacity to use new technologies to be ready for what may happen next.”
He added that the IMF supports nearly 100 countries that are actively researching CBDCs.
“If central bank digital currencies are designed prudently, they can potentially offer greater flexibility, greater security, greater usability and lower cost than proprietary forms of digital currency. This is clearly the case when compared to unsupported cryptoassets, which are volatile in nature. Also, even better-managed and regulated stablecoins may not quite match a stable and well-designed central bank digital currency.”
Recently, the IMF has published a document that includes an in-depth review of six different CBDC projects. He has also previously warned that crypto assets pose consumer protection and financial stability risks and could deplete the banking industry’s market share. The agency also called for comprehensive and synchronized crypto regulations around the world.