Kristalina Georgieva, Director of the International Monetary Fund, has expressed worry over the readiness of many countries to transition to national digital currencies (CBDCs).
She has emphasized that while there are many benefits to introducing this innovative tool, there could also be risks to the financial system’s stability.
CBDCs increase the accessibility of banking services, but each state that creates a token needs an efficient regulatory framework to guarantee the security and transparency of transactions.
Georgieva has reminded that the IMF is working with 50 countries in the development and implementation of CBDCs.
These countries’ economies will experience a qualitative shift, and financial institutions need to back them to enhance the mechanism of its functioning, the IMF director mentioned.