New global CBDC platform must be designed to outpace cross-border crypto adoption: IMF managing director

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The International Monetary Fund (IMF) says a planetary digital currency should be built to connect every country before the rise of cryptocurrencies does the same.

IMF chief Kristalina Georgieva said the agency was working on a global platform for central bank digital currencies (CDBCs) to enable transactions between countries, Reuters reports.

She argues that if CBDCs are approached on a country-by-country basis, the need for global interoperable payment systems would be overlooked and CBDC capacity would be underutilized.

“CBDCs should not be fragmented national proposals…To have more efficient and fairer transactions, we need systems that connect countries: we need interoperability…

For this reason, at the IMF, we are working on the concept of a global CBDC platform.

Georgieva says the IMF is pushing central banks to agree on regulations for digital currencies that could enable global interoperability. Without a framework, she says the void in global payments would eventually be filled by decentralized cryptocurrencies.

According to her, cryptocurrencies are an investment opportunity when they are asset-backed, but when they are not, they are a speculative investment.

IMF executive says CBDCs would promote “financial inclusion” and make remittances cheaper.

A recent survey by the Cato Institute in conjunction with YouGov suggested that the overwhelming majority of Americans were opposed to issuing a CBDC if it gave the government control over how people spend their money.

About 68% said they were against adopting a CDBC if it meant the government could keep tabs on their spending, and 68% said they wouldn’t support a CBDC if it eliminated all money .

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