The International Monetary Fund (IMF) says Central Banks may issue digital currencies in the future.
According to a survey report released by the IMF and World Bank, responses from the survey show that financial institutions within its member countries are interested in digital currencies and issuing Central Bank Digital Currencies (CBDC); making deductions from about 96 responses received.
The survey paper notably mentions central banks in Uruguay which has launched a pilot CBDC program, China, Sweden, Bahamas and Ukraine as those testing similar systems. The report highlights that most central banks are currently conducting research on the impact of CBDCs as regards financial stability metrics, money transfer policies and entry of nonbank institutions.
Further details also reveal varying motivations behind the interest in digital currencies. While developed countries seek alternatives to fiat (cash) as its use declines, developing countries focus on the digital currency advantage to reduce banking cost and offer services to their unbanked populations.
What is however similar on both fronts is that most central banks do not buy the idea of private or entirely anonymous CBDCs, they unitarily want monitor-able CBDCs; though some focus on larger transactions and are cool with having smaller transactions without checks.
In all, the general consensus remains that sooner rather than later, these traditional financial institutions and banks will get the cryptocurrency and digital asset filler.
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