- It is intended to unite digital currencies of different jurisdictions
- It will also solve certain legal difficulties
- But there are no practical steps to implement the initiative yet
The International Monetary Fund (IMF) is developing infrastructure to simplify digital currency settlements. Such a platform would greatly simplify cross-border payments and increase access to financial instruments.
This is the statement made by Tobias Adrian, Head of the IMF Monetary System Department.. Managing Director Kristalina Georgieva also confirmed this at a conference in Morocco.
“We work on the principle of interoperability.. The concept includes common infrastructure, which will avoid fragmentation of the economy,” she said.
An interesting remark, this scenario was also mentioned by ex-CTO Coinbase. He said that if the globalization strategy fails, the financial system will become analogous to the Wild West with separate “enclaves.. These are “gaps” in the law, incompatible or insufficient privacy measures, and legal complexities.
The IMF’s decision is more relevant than ever. Because of inflation and shrinking cash supply, some central banks are already actively testing the CBDC.
According to Georgieva, 10 of the 14 central banks being considered by the IMF are “crossing the finish line” in this process. However, the idea of developing a platform is still only “on paper”.. So, for example, the idea of issuing digital currency is being considered in Turkey. Here, though, locals are more likely to pay attention to other digital assets for fear of undue pressure from the authorities.