IMF Managing Director Kristalina Georgieva called Tuesday for the modernization of the cross-border payment system by using digital platforms, arguing that this would reduce the risk of a fragmented global economy.
Speaking at a conference in Switzerland, Georgieva stressed that the international system — which allows for the movement of capital between countries — faces major challenges, starting with significant costs.
For the IMF, new platforms could be a source of innovation — provided they are well designed and regulated. They must also be compatible with countries’ policy objectives.
This is further evidence of our economies, both international and domestic heading towards digitalization. Where at present the prospect of a digital currency seems a little to far off in the future to be concerned about.
The bank of England website states, “Central bank digital currency (CBDC) is money that a central bank, like the Bank of England, can produce. It’s called digital (or electronic) because it isn’t physical money like notes and coins. It is in the form of an amount on a computer or similar device”.
This, of course, falls inline with, The Bank Of England having released a statement on 19th April 2021 pertaining to an, ‘exploration’ of a global digital currency system.
“The Bank of England and HM Treasury have today announced the joint creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential UK CBDC. A CBDC would be a new form of digital money issued by the Bank of England and for use by households and businesses. It would exist alongside cash and bank deposits, rather than replacing them.”
“The Government and the Bank of England have not yet made a decision on whether to introduce a CBDC in the UK, and will engage widely with stakeholders on the benefits, risks and practicalities of doing so.”
International Monetry Fund article from ‘Insider Paper’: https://insiderpaper.com/imf-chief-calls-for-modernization-of-international-payment-system/
Insider Paper: https://insiderpaper.com/Band of England Statements can be read here: https://www.bankofengland.co.uk/news/2021/april/bank-of-england-statement-on-central-bank-digital-currency and here: https://www.bankofengland.co.uk/research/digital-currencies
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