IMF Endorses CBDCs to Bolster Fintech and Financial Inclusion

Source: Investing.com

The International Monetary Fund (IMF) has thrown its weight behind Central Bank Digital Currencies (CBDCs), with Managing Director Kristalina Georgieva highlighting their potential to enhance financial inclusion and fintech development. Speaking at a Singapore event, Georgieva underscored that while current adoption levels are low, more than half of the countries worldwide are exploring the feasibility of CBDCs.

Georgieva pointed out that CBDCs could address the costly distribution challenges of cash, especially in island nations, and improve financial resilience in mature economies. They also promise to expand access in regions where traditional banking services are limited. The IMF chief emphasized that countries should prepare for future CBDC deployment to counteract emerging private digital currencies like Libra.