Kristalina Georgieva, managing director of the IMF, urged countries to be more active in their pursuit of CBDC.
The IMF fears that failure to agree on a common CBDC platform could lead to a vacuum that is likely to be filled by cryptocurrency.
The IMF's warning comes at a time when Cryptocurrencies are gaining increasing attention and acceptance, suggesting that they may eventually become a viable alternative to traditional fiat currencies. Cryptocurrencies are gaining increasing attention and acceptance, suggesting that they may eventually become a viable alternative to traditional fiat currencies.
If cryptocurrencies — which are decentralized and not tied to any government or central authority — fill the vacuum left by the lack of CBDCs and become the preferred medium of exchange for international trade, then the entire global financial system could be revolutionized.
Cryptocurrencies can offer faster and cheaper transactions than traditional financial systems, with the added advantage of increased privacy.
*Today the price of bitcoin surpasses $41,500, increasing annual gains to over 150%