International Monetary Fund (IMF) Managing Director Kristalina Georgieva stated the organization is developing a platform for central bank digital currencies which will facilitate transactions between countries utilizing the digital monetary tool.
“CBDCs should not be fragmented national propositions. ... To have more efficient and fairer transactions, we need systems that connect countries: we need interoperability,” Georgieva told a conference attended by African central banks in Rabat, Morocco.
The IMF is aiming for central banks to agree on a common regulatory framework for digital currencies that will allow global interoperability. Failure to agree on a common platform would create a vacuum, Georgieva warned, which would likely be filled by decentralized cryptocurrencies.
“CBDCs could reduce the number of intermediaries in cross-border payments, foster competition and enhance transparency,” Georgieva said in prepared remarks. “However, easy access to foreign CBDCs could lead to risks of currency substitution and capital flow volatility.”
Georgieva reiterated the role of the IMF in fostering both domestic and international economic and financial stability, including through digital currencies.
“If countries develop CDBCs only for domestic deployment we are underutilizing their capacity,” Georgieva said.