In a keynote address at the Singapore FinTech Festival this week, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), urged governments and central banks to step up their adoption of central bank digital currencies (CBDCs). Georgieva’s rationale was that CBDCs would improve cross-border payments, which she described as currently being “expensive, slow and available to few,” and extend financial capabilities in places with a high number of unbanked individuals.
In addition to Gregorieva using her bully pulpit, the IMF also launched a new handbook at the Singapore festival designed to help policymakers launch their own CBDCs. The IMF’s Central Bank Digital Currency Virtual Handbook is intended to serve as a reference guide for policymakers, experts at central banks, and ministries of finance.
“The CBDC Virtual Handbook aims to collect and share knowledge, lessons, empirical findings, and frameworks to address policymakers’ most frequently asked questions on CBDCs,” the IMF said. “As our body of knowledge and analysis grows, we will continue to add about five chapters every year aiming to provide about twenty chapters by 2026. Moreover, chapters will be periodically updated, reflecting evolving views.”
Interest Among Central Banks Remains Very Strong
The level of global interest in CBDCs is high, as the IMF noted in a September report. “According to the Bank for International Settlements (BIS) survey in 2022, 93 percent of central banks are exploring CBDCs, and 58 percent consider that they are likely to or might possibly issue a retail CBDC in either the short or medium term. Indeed, retail CBDC issuance is being explored in more than 100 countries.”
But there’s still plenty of room in this space for CBDCs to grow. As of June, only 11 countries had adopted CBDCs, according to a study from the Atlantic Council. There are an additional 53 countries in advanced planning stages for a CBDC, and 46 more are researching the topic. Georgieva’s recommendations and the practical help from the handbook could go a long way toward pushing countries and their central banks over the finish line.