While CBDC studies continue unabated all over the world, new statements came from IMF President Kristalina Georgieva.
Speaking at the Singapore FinTech Festival 2023, IMF President Georgieva said that CBDCs may replace cash in the future and we need to prepare for this.
The IMF president used the following statements in his statements:
“CBDCs have the potential to replace cash.
It can replace physical money, especially in economies where cash distribution is costly, but adoption may take some time.
In more developed economies, they can offer durability and flexibility. And they can improve financial inclusion in situations and countries where few people have bank accounts.”
The IMF chief stated that more than 100 countries, approximately 60% of the countries in the world, are exploring CBDCs.
Apart from IMF President Georgieva, Bank of America analysts also prepared a report on CBDCs.
According to Coindesk, Bank of America analysts also said that CBDCs will come eventually, but a digital dollar is unlikely in the USA in the near term.
Analysts led by Alkesh Shah said:
“The Fed continues to pilot CBDCs but has not committed to issuing a CBDC, a digital dollar.
At this point, the Fed will not issue a CBDC without support from the executive branch and Congress.
“We expect CBDC to provide a more efficient and less costly payment system for cross-border and domestic payments, monetary policy implementation and a tool for enhanced financial inclusion.”
*This is not investment advice.
