Christine Lagarde, Managing Director and Chairman of the International Monetary Fund (IMF), encourages research and detailed study of the digital currency of the central bank (CBDC), given the declining demand for cash and the growing preference for digital money.
In a speech for the Singapore Fintech Festival on Wednesday, Lagarde said: "I believe that we should consider in more detail the possibility of issuing digital currency. For the state, this is a special advancement of the digital economy."
According to her, independent central banks around the world seriously began to consider the issue of production of digital currency, including Canada, China, Sweden and Uruguay. "They approve of changes and new thinking, like the IMF".
Lagarde noted that basic cryptocurrencies, such as Bitcoin, Ethereum and XRP, also compete for a place in the cashless world, constantly improving themselves in the hope of offering a more stable price, as well as a quick and cheap settlement.
However, at the same time, the IMF again criticized the view that a cryptocurrency could be an alternative to CBDC.
In a new report titled "Casting Digital Currency of the Central Bank", which was shown on Wednesday along with Lagarde’s speech, the IMF said that "cryptocurrencies differ from each other in many ways and fight for the full right to get all the functions of money".
When evaluating various forms of money in the report, such as: cash, cryptocurrency, private electronic money and deposits of commercial banks. The IMF concluded that "cryptocurrencies are the least attractive option".
The organization said that cryptocurrencies received a low score in the speed of settlement due to current technological limitations, although he acknowledged that in return they offered the advantage of anonymity. In addition, technical limitations can ultimately be overcome.
Nevertheless, the IMF says that research in the field of digital currency must continue decisively, given that the questions that need to be answered are deep and complex and have far-reaching plans and development.
Editor: Yuliya Soroka