International Monetary Fund (IMF) managing director Kristalina Georgieva revealed that the IMF is actively developing a platform dedicated to facilitating transactions between countries via central bank digital currencies (CBDCs).
This move reflects the IMF’s commitment to fostering global interoperability by encouraging central banks to establish a unified regulatory framework for digital currencies.
Avoiding fragmented national approaches
Speaking at a conference attended by African central banks in Rabat, Morocco, IMF managing director Kristalina Georgieva emphasized the importance of avoiding fragmented national approaches when it comes to CBDCs.
Georgieva underscored the need for interconnected systems and global interoperability to achieve more efficient and equitable transactions.
Her remarks emphasized the significance of developing CBDCs that go beyond national boundaries. She stressed that for transactions to be truly efficient and fair, it is crucial to establish systems that connect countries and enable seamless interoperability.
The conference provided a platform for African central banks to engage in discussions about the future of CBDCs and explore strategies for achieving interoperability.
Georgieva’s statement highlighted the IMF’s commitment to promoting a global approach to CBDCs, encouraging central banks to work together to establish systems that transcend national borders, becoming more than a domestic project.
Its aim with this announcement was to create the enhanced connectivity and interoperability needed for CBDCs to drive economic growth, financial inclusion, and efficiency on a global scale.
114 and counting
According to Georgieva, a total of 114 central banks worldwide are currently exploring the potential of CBDCs, with approximately 10 of them already making significant progress in their development.
Just weeks before this announcement, the industry has been following along with the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) over the classification of several cryptocurrencies including XRP.
Although regulation remains unclear, Ripple, the platform associated with the token in question, is another notable player in CBDC development with the announcement of their own partnership with Banco de la República, Colombia’s central bank, to explore the possibilities of blockchain technology in the financial sector, including the potential development of a CBDC.