IMF Chief Georgieva makes 'money' statement that will shape the future

In her speech at the Singapore Fintech Festival, IMF Managing Director Georgieva stated that many countries are researching central bank digital currencies and developing regulations to guide developments regarding digital money.

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IMF Chief Georgieva makes 'money' statement that will shape the future

International Monetary Fund (IMF) Managing Director Kristalina Georgieva stated that central bank digital currencies could replace physical money, which is costly to distribute, in island economies.

Pointing out that there is still a lot of room for innovation in this area, Georgieva noted that there is a great deal of uncertainty regarding use cases.

Georgieva emphasized that the public sector must continue to prepare for the implementation of central bank digital currencies and related payment platforms in the future.

Stating that the process of implementing central bank digital currencies is not yet imminent, Georgieva noted, however, that approximately 60 percent of countries are researching them.

"IT COULD REPLACE PHYSICAL MONEY"

Georgieva used the expression, "Central bank digital currencies could replace physical money, which is costly to distribute, in island economies."

Stating that central bank digital currencies could provide resilience in more developed economies, Georgieva expressed that they could improve financial inclusion in places where the number of people with bank accounts is low.

Georgieva pointed out that central bank digital currencies would offer a "safe and low-cost" alternative, conveying that their benefits would depend on how technologies evolve.

Stating that artificial intelligence could enhance some of the benefits of central bank digital currencies, Georgieva expressed that it could improve financial inclusion by providing fast, accurate credit scoring based on various data, and could provide personalized support to individuals with low financial literacy.

News Source: 12punto