IMF director stresses importance of CBDCs for global finance

SINGAPORE – At the Singapore FinTech Festival today, International Monetary Fund (IMF) Director Kristalina Georgieva emphasized the significance of Central Bank Digital Currencies (CBDCs) in shaping the future of global financial systems. She advocated for CBDCs as a means to enhance financial oversight, inclusion, and economic resilience.

Georgieva’s remarks underscored the potential of CBDCs to provide safer and more cost-efficient alternatives to private digital currencies. She pointed out that these state-backed digital assets could also ensure better data protection, potentially enhanced by artificial intelligence technologies. Despite the current modest adoption rate worldwide, Georgieva called for countries to prepare for the integration of CBDCs into their economies.

Later in the day, at a meeting with the IMF-Singapore Regional Training Institute (IMF-STI), Georgieva reiterated the importance of developing policies tailored to embrace digital currencies. She highlighted CBDCs’ role in reducing reliance on cash, fostering financial inclusivity, improving economic stability, and streamlining international banking practices.

Acknowledging Singapore’s position as a leading player in FinTech innovation, Georgieva lauded its contributions and expressed that the IMF’s virtual handbook is designed to assist policymakers and financial experts in understanding the complexities of CBDC implementation. The handbook aims to provide comprehensive guidance on navigating the nuances of adopting digital currencies at the national level.

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