IMF to Release Handbook on Central Bank Digital Currencies (CBDCs) Amid Growing Global Interest
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The International Monetary Fund (IMF) will soon publish a handbook on central bank digital currencies (CBDCs) in an effort to guide people about digital currencies. This is because interest in digital currencies grows day by day. CBDCs are becoming more popular and people are asking for guidance on how to use them.
In response, the IMF planned to release a CBDC handbook, deputy managing director Bo Li said in a recent speech. pic.twitter.com/omvezQu0Ze
— Borg Sinclair (@BorgSinclair1) April 14, 2023
Thereby, IMF wants to provide support and advice to those who want to learn more about CBDCs. Notably, the announcement was made by the IMF’s deputy managing director Bo Li during a speech.
IMF Working with Multiple Countries to Develop CBDC Skills
International Monetary Fund (IMF) has been working with almost 30 countries for the past two years to help them with their central bank digital currency (CBDC) plans. Infact, they have been contacted by more than 40 countries. However, the IMF thinks it’s important to help countries develop their CBDC skills so that everyone can benefit from them and there is no digital divide.
In addition, poor design of a CBDC could to a variety of risks. To address the informational need, the IMF will produce a CBDC handbook that will be “the basis for capacity development,” Li said. pic.twitter.com/3vohyQpIR9
— 宁点点(💙,🧡) (@xcsvcuiq) April 14, 2023
It is worth mentioning that the IMF plans to make a guidebook on CBDCs to ensure they are designed properly. If a CBDC is poorly designed, it could pose risks. That’s why the IMF wants to provide guidance and tools to help countries evaluate and develop effective CBDC policies.
Hence, the guidebook will give information, share experiences, and research findings, and provide tools for evaluating CBDCs, which will help people to develop the skills they need to make CBDCs work well.
IMF Providing Targeted Support and Guidance on CBDCs to Countries in Need
If talking about its time duration, the guidebook about CBDCs is expected to be finished in four to five years. Notably, Japan is giving a lot of money as funding to help make it happen. Interestingly, there will be almost 19 chapters in the guidebook that will cover both policy and technical issues. As people ask more questions about CBDCs, the IMF is getting better at giving advice that fits each country’s needs.
Thereby, the IMF is giving specific advice about CBDCs based on what has worked in the past. They will help the countries that need it the most, especially the ones that are important or working on CBDCs but don’t have the skills or rules they need.
Ultimately, the guidebook will give helpful information to help countries use CBDCs in the right way and avoid problems. However, the reason behind IMF Handbook is to make sure that everyone benefits from CBDCs and that there are no risks or differences between people who use them.
