IMF Study Evaluates Benefits and Risks of Central Bank Digital Currencies
The IMF surveyed 19 central banks in the Middle East and Central Asia region with a view to gage the possible pros and cons of Central Bank Digital Currencies (CBDCs).
According to the survey, while CBDCs may increase financial inclusivity and reduce costs, their necessity is doubtful and dealing with other hindrances might be more feasible.
In order to have a successful implementation of CBDC, there is a need for strong digital infrastructure, literacy, identification systems as well as trust in institutions.
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The IMF states that the true potential of CBDCs will depend on an enabling financial ecosystem.
IMF is presently doing research on CBDCs advising countries accordingly including areas such as Saudi Arabia which has already started piloting cross-border CBDC projects.
Nevertheless, introducing CBDCs is complicated since they pose dangers related to financial stability, operational challenges, and prospective bank deposits or lending competition.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
