IMF Dismayed Over ”Fragmentation” Risk As Public Chooses Cryptocurrencies Over CBDCs

The International Monetary Fund (IMF) is concerned about the fragmentation of cryptocurrencies as people across the world are adopting private cryptos over Central Bank Digital Currencies (CBDCs).

That’s the view of managing director Kristalina Georgieva, who also urged central banks to quicken their efforts to roll out CBDCs before private cryptos fill the gap.

“We may be at a point where the public sector needs to offer a little more guidance,” she said during a speech in Singapore earlier this month.  “Not to crowd out, not to disrupt, but to act as a catalyst, to ensure safety and efficiency – and to counter fragmentation.”

With more than 120 countries already exploring CBDCs as an option, only 11, comprising Nigeria and other Caribbean players, have already launched their own

“If anything, we need to raise another sail to pick up speed,” she said. “The world is changing faster than most imagined.”

CBDCs Need A Common Platform

The absence of a common platform for CBDCs could give room for cryptocurrencies to take over, she said. This is especially true as crypto as an asset class continues to grow in popularity, progressively gaining mainstream attention and adoption.

Also Read:

  • IMF Capitulates on Bitcoin Bans, Says They’re Not Effective
  • IMF-FSB Crypto Roadmap Says Blanket Bans Don’t Work
  • IMF Documents and Upcoming CBDC Platform Doesn’t Relate To XRP, WOK
  • Saudi Arabia’s Central Bank Governor Wants IMF to Get Involved With Crypto and Provide Regulation

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