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The central bank’s digital currencies will be reliable, but we do not consider BTC to be money – IMF

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IMF Digital Currency vs Bitcoin
source: www.shutterstock.com/Kristi Blokhin

According to IMF Director General Kristalina Georgieva, digital currencies by central banks in the most reliable form of digital money.

On the contrary, it is difficult to consider cryptocurrencies, specifically BTC as money, says the CEO of the International Monetary Fund (IMF).

IMF director describes the perspectives of the CBDC

There are already 110 countries among IMF members exploring the possibility of using the central bank’s digital currency (CBDC). This was announced by Executive Director Kristalina Georgieva at a conference in Italy. In her speech, she noted that the key challenge for monetary authorities is currently guarantee interoperability these names.

According to the director, the main challenge is whether digital currencies supported by the state can serve as a means of exchange that the public will trust. Other issues we will need to address are, for example, whether the CBDC will be able to contribute to domestic economic stability and how they will fit into the international regulatory frameworks established by organizations such as the Bank for International Settlements (BIS).

The BIS has been leading several projects for a long time to test the use of government-issued digital currencies in international transactions. Cooperation between banks in Australia, Malaysia, Singapore and South Africa is well known. This includes cooperation between China, Hong Kong, Thailand and the United Arab Emirates, or even a wholesale CBDC test performed between French a Swiss National Bank. Some other countries have begun to consider similar steps.

Cryptocurrencies do not have a similar trust

“It is very impressive to what extent the international community, central banks and institutions like ours are actively engaged in ensuring that in this rapidly evolving world of digitization, money is a source of trust and helps the economy function rather than they should be at risk, “says Georgieva.

The IMF director further emphasizes that she sees digital currencies issued by central banks as the most reliable form of digital money, while she argues that it is currently difficult to consider cryptocurrencies as official currency.

“De facto assets” such as BTC are not backed by other assets that keep their value stable and may rise or fall sharply. Georgieva further insists that, in our history of money it will be difficult to consider them as money as such ”.

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