- IMF Managing Director Kristalina Georgieva acknowledged the role of CBDC
- But plans to start with wholesale types
- This CBDC is only for dealing with financial institutions
IMF Managing Director Kristalina Georgieva spoke at the Milken Institute Global Conference. In her speech, she touched on the topic of central bank digital currencies (CBDC).
The official said that these currencies will take their place in the financial system. But some CBDC types carry risks that are still unexplored.
“The IMF can no longer ignore digital versions of fiat currencies. We are on our way to them, and we can’t undo it..
Before the pandemic we said the future was digital, and with the pandemic the future has arrived.”
Georgieva distinguished between two types of CBDC. It divides them into retail and wholesale. Retail currencies are currencies that can be held and used by individuals.
Wholesale CBDCs would be reserved for banks and select financial institutions.
“We believe that wholesale CBDCs can be implemented in a fairly small space to avoid unwanted surprises.
Retail CBDCs are another matter. They are completely changing the financial system. And so far we don’t fully know what risks this could lead to.”
The official added that about 110 countries are now either studying CBDCs or have already started to implement them. The IMF is in discussions with 50 countries on the topic.
Remind that the IMF released another report on cryptocurrencies in March. They said that the further spread of digital money will damage banks.
In March, the IMF published another report on cryptocurrencies.