The International Monetary Fund (IMF) has issued a report predicting global central banks will issue digital currencies.............sometime in the future. While looking into the future, the IMF may take note that several countries are already on the verge of going digital. Sweden, China, Uruguay, Ukraine and even Russia are testing systems. After conducting a survey in conjunction with the World Bank, the IMF concluded that many more central banks would probably introduce their own digital currencies in some form. It is a natural progression as most economies are increasingly going cashless. Read more below.
Bill Taylor/Fintek Capital
"The International Monetary Fund (IMF) believes that central banks may issue digital currencies in the future, according to a report by the IMF on June 27
According to the full paper, the IMF and World Bank conducted a survey on fintech that solicited answers from financial institutions within all member countries, and has based its conclusions in part upon the 96 received responses.
According to the paper, several central banks in different countries are considering implementing some form of Central Bank Digital Currency (CBDC). Uruguay has reportedly launched a CBDC pilot program already, while the Bahamas, China, Eastern Caribbean Currency Union, Sweden and Ukraine are “on the verge” of testing their systems.
Additionally, a number of central banks have reportedly been conducting research on CBDC’s potential impact on financial stability, the structure of the banking sector, entry of nonbank financial institutions, and monetary policy transmission.
Motivation for offering a CBDC varies, per the report. Both emerging economies as well as developed economies are said to be considering CBDC options, with the latter seeking to provide an alternative to cash as its frequency of use dwindles. For emerging economies in developing countries, on the other hand, the main upshot of a CBDC would be reducing banking costs, as well as potentially making banks more available to unbanked citizens..."