International Monetary Fund IMF report predicts that central banks will issue digital currency in the future

According to a report by Cointelegraph on June 29, a report released by the International Monetary Fund (IMF) on June 27 showed that the IMF believes that central banks may issue digital currencies in the future.

2015 World Bank Group / International Monetary Fund Spring Meetings

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According to the report, the IMF and the World Bank conducted a survey of financial technology, which sought responses from financial institutions in all member states and, to some extent, based on the 96 responses received. .

The report said that central banks in several countries are considering introducing some form of central bank digital currency (CBDC). According to reports, Uruguay has launched the CBDC pilot project, while the Bahamas, China, the Eastern Caribbean Monetary Union, Sweden and Ukraine are “immediately” testing their respective CBDC issuance systems.

In addition, it is reported that some central banks have been studying the potential impact of CBDC on financial stability, banking structure, non-bank financial institution entry, and monetary policy transmission.

According to the report, the motives for issuing CBDCs vary from country to country. It is reported that as the frequency of cash use declines, both emerging and advanced economies are considering the CBDC program, which is seeking to offer alternatives to cash. On the other hand, for emerging economies in developing countries, the main result of CBDC will be to reduce bank costs and may make it easier to serve citizens without bank accounts.

However, a similarity is that most central banks are not interested in issuing fully anonymous CBDCs, as agencies hope that transactions will eventually be tracked by the authorities when necessary. However, some of these institutions are considering splitting up large token holdings and transfers, leaving only such tokens traceable.

As Cointelegraph previously reported, conservative economist Stephen Moore recently joined a project to create a Fed-like entity for cryptocurrency. The project, called "Decentral," is said to regulate the cryptocurrency supply to reduce the volatility of the encryption market.