The head of the International Monetary Fund, Christine Lagarde, believes that the nature of money is changing in the modern world, and the issue of issuing digital currencies of central banks (CBDC) should be seriously considered.
“I believe that we should consider issuing digital currency. For the state, this may be the task of providing money to the digital economy , ”said Lagard in a speech at the Singapore FINTECH festival.
She recalled that in some jurisdictions, including Sweden , Canada, China and Uruguay, the authorities are seriously considering the idea of a CBDC.
In her opinion, such a currency can be consistent with such public policy objectives as expanding access to financial services, security and consumer protection, and the confidentiality of payments.
As noted by the head of the IMF :
“The introduction of CBDC carries certain risks of financial integrity and stability, and measures in this regard have to be considered. In addition, the introduction of CBDC can “strangle innovation” if central banks begin to provide “a comprehensive solution – from the digital wallet, the token to the internetwork services,” added Lagard.
But here the solution may be that central banks will focus on their strengths – internetworking, and financial institutions and start-ups will work with the client, provide a convenient interface and innovate.
“It will be a public-private partnership at its best,” Christine Lagarde emphasized.
It is noteworthy that in September the IMF Directorate recommended the Marshall Islands to abandon the idea of issuing a CBDC. The island nation announced plans to issue a digital currency called Sovereign in February of this year. At the same time in May, the IMF called on central banks to compete with cryptocurrencies , including the release of CBDC.
