Share this article
CBDCs Good for Payments, Even With Competition: IMF
The International Monetary Fund's planned CBDC handbook offers guidance for policymakers on how to explore digital versions of sovereign currencies.
Nov 15, 2023, 4:20 p.m.
Make us preferred on Google
A well-designed central bank digital currency can improve payment systems even as other solutions proliferate, according to staff at the International Monetary Fund (IMF) who are getting ready to publish a handbook on the subject.
A paper presenting initial findings on CBDCs to the IMF's executive board published Tuesday said it offers "initial guidance" to policymakers on how to explore broader implications of national digital currencies. The planned handbook coming after the 2023 annual meetings will address a range of frequently asked questions covering everything from policy objectives and legal considerations to cyber resilience and readiness to issue.
STORY CONTINUES BELOW
Governments around the world are feeling pressure from international organizations to consider digital versions of sovereign currencies as a way to strengthen digital payments and improve financial inclusion. During a Wednesday speech, IMF Managing Director Kristalina Georgieva said CBDCs could replace cash in island economies, and that the public sector should continue working to support the issuance of such currencies.
While policymakers in the U.S. are not too sweet on a digital dollar, other major jurisdictions like the European Union seem more amenable to CBDCs, with an official at the Bank of Italy telling CNBC on Wednesday that a digital euro would be the answer to private crypto that reference fiat currencies – known as stablecoins – and that CBDCs protect public interest where private cryptocurrencies do not.
"If appropriately designed, CBDC has the potential to improve payment systems and support a role for central bank money even as other digital payment solutions proliferate. But the appropriateness of CBDC will vary with country circumstances. Given the complexities and the novelty involved, policymakers need to explore CBDC carefully and systematically," the IMF paper said.
The organization is planning more notes and handbook chapters for 2024.
Read more: IMF Official Presents Blueprint for Cross-Border CBDCs
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
White House to meet with crypto, banking executives to discuss market structure bill
A vote on the legislation was delayed earlier this month after hitting resistance over how it proposes regulation regarding stablecoins.
What to know:
- The White House plans to meet with executives from major crypto firms and traditional banks to discuss the struggling digital asset market structure bill.
- The legislation has faced resistance over its proposed rules for stablecoins, especially limits on interest-bearing or reward-linked features tied to dollar-pegged tokens.
- The summit is hosted by the White House's crypto policy council.
Top Stories
