Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), has stated that cryptocurrencies and stablecoins are not as effective as central bank-issued currencies, CBDCs.
According to her, “If CBDCs are designed prudently, they can potentially offer more resilience, more safety, greater availability, and lower costs than private forms of digital money.”
During a speech at the Atlantic Council in Washington D.C., the managing director of IMF, Kristalina Georgieva spoke at length about the future of money, cryptocurrency, and central bank digital currencies (CBDCs).
Central banks have started releasing their native CBDCs, and she addressed this, stating: “These are still early days for CBDCs and we don’t quite know how far and how fast they will go.”
She went on to state,
“If CBDCs are designed prudently, they can potentially offer more resilience, more safety, greater availability, and lower costs than private forms of digital money.”
The IMF MD added: “That is clearly the case when compared to unbacked crypto assets that are inherently volatile. And even the better managed and regulated stablecoins may not be quite a match against a stable and well‑designed central bank digital currency.”
“The IMF is deeply involved in this issue, including through providing technical assistance to many members. An important role for the Fund is to promote the exchange of experience and support the interoperability of CBDCs.”
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