The International Monetary Fund (IMF) is pouring a bucket of cold water on the heads of supporters of the issuance of digital currencies of central banks (CBDC). It turns out that only a few countries in the world can legally create such currencies.
IMF: We will wait a little longer for CBDC
In a recent blog post, the IMF reports that while more and more central banks are exploring the possibility of issuing central bank digital currency (CBDC), most of the fund’s member countries have legal structures that prevent the development of such instruments. The IMF even estimates that as much as “80 percent. world central banks are either unable to issue digital currency in line with their laws, or the legal framework is not clear ”. In addition, the authority ensures that only 40 of its members are allowed to issue digital currency.
The IMF also emphasizes that if a country issues a digital currency, everyone in its jurisdiction must have easy access to that payment system, which can pose a major challenge to financial infrastructure:
“Legal tender status is usually only granted to those means of payment that can be easily received and used by the majority of the population… To use digital currencies, you must first provide a digital infrastructure – laptops, smartphones, connectivity. Governments, however, cannot force their citizens to own such equipment, so it can be difficult to grant legal tender status to a central bank’s digital instrument. “
CBDC in the world
In November, the IMF published a report indicating that it would be necessary “Analysis and discussion in policy-making circles [monetarną] and in the relevant political bodies “, if states want to continue moving forward with CBDC.
This year, the IMF also released a report stating that despite legal complexities, CBDCs are predicted to change the global financial landscape. So it is possible that, for example, the digital yuan will threaten the strong position of the dollar in the world:
“Historical precedents of sudden change suggest that new events, such as the emergence of digital currencies and new payment ecosystems, could accelerate the transition to a new reserve currency landscape.”
So far, several countries, including China, Sweden, Saudi Arabia and the United Arab Emirates, have announced that they will be piloting their digital currencies this year.