- The International Monetary Fund has thumbs up centrals banks which are developing digital currencies to take on cryptos
- The IMF managing director, Georgieva Kristalina about 100 central banks are working on developing digital currencies
- In her view cryptos are not better than stablecoins and their volatility of makes them susceptible to fraud
Despite the limp performance of the e-Naira, the International Monetary Fund (IMF) has said the digital currency is better than cryptocurrencies including the premium crypto, Bitcoin.
A statement by IMF’s managing director, Kristalina Georgieva says that digital currencies are gaining speed after pivoting from theoretical to practical explorations, Nairametrics says.
She said central banks are getting to work to take on cryptos and lure their people away from using cryptos suspected to be fraudulent and evasive.
We're not sure digital currencies will survive, IMF says
IMF urges Nigerians to trust the eNaira and other Central Bank Digital Currencies because crypto is no match
The IMF boss said they are still not sure about the survival of digital currencies as they are still in their infancy and the central banks are building to technology to take advantage of CBDCs with full support from the global body.
PAY ATTENTION: Subscribe to Digital Talk newsletter to receive must-know business stories and succeed BIG!
According to her, cryptos are volatile and not backed by any government and said stablecoins cannot compete with the ones managed by central banks.
She said about 100 countries are about to launch digital currency with support from the IMF
“In order to become familiar with the bits and bytes of digital money, central banks are getting to work. We don’t yet know how far and how fast CBDCs will go, since they are still in their infancy. As a result, central banks are building up their ability to harness new technologies – so that they will be ready for whatever lies ahead.”
100 countries working on digital currencies
According to her, central banks all over the world are committed to reducing the risks associated with effects of CBDCs on financial intermediation and credit provision. In order for the economy to function properly, this is important. The digital currencies the IMF studied are not interest-bearing, which, she says, makes them useful, but not as attractive as conventional bank deposits as a means for savings.
Several CBDC projects were examined in-depth in a recent IMF paper.
In addition, the IMF has in the past raised concerns about crypto assets becoming a threat to financial stability and consumer protection and making its way into banking sector market share. As part of the institution’s global project, crypto regulations will also be swept and synced.
IMF asks Nigerians to trust e-Naira
Legit.ng has reported that the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, says that crypto assets and stable coins are no match for well-designed central bank digital currencies (CBDCs) as eNaira.
Nigeria: Report list five African countries in big trouble over huge debts as relief period expires in 2022
Georgieva disclosed this while speaking at the Atlantic Council in Washington D.C. regarding the future of money, cryptocurrency, and Central Bank Digital Currencies (CBDCs).
According to her, the central banks of countries are exploring CBDCs and that it would soon displace cryptocurrency and become a mainstay.