The post The IMF advocates for CBDCs in the Middle East’s financial system appeared on BitcoinEthereumNews.com.

A survey conducted by the International Monetary Fund (IMF) of 19 central banks in the Middle East and Central Asia (ME&CA) region has found that central bank digital currencies (CBDCs) may not be necessary to achieve the intended policy goals. However, they can advance financial inclusion and lower the cost of financial services. Also Read: SEC permanently ends all investigations into Ethereum The IMF survey highlights CBDCs’ potential benefits in promoting financial inclusion and reducing the cost of financial services. However, it emphasizes the need for careful consideration when adopting a CBDC.  The IMF’s says CBDCs are good for ME&CA The IMF has been carrying out extensive research on the evolution of CBDCs and providing guidance to member nations regarding their potential integration into their monetary systems.  The survey pointed out that addressing underlying constraints and enhancing other digital payment systems may be a more practical alternative to CBDCs. Ultimately, introducing digital currencies will be a long and complicated process that central banks must approach with care [..] Policymakers need to determine if a CBDC serves their country’s objectives and whether the expected benefits outweigh the potential costs, risks for the financial system, and operational risks for the central bank. The IMF A senior IMF official has also mentioned the potential benefits of a global CBDC platform, highlighting, “one global CBDC platform that will allow for capital controls could cut payment costs.” Several countries in the Middle East and Central Asia region, such as Saudi Arabia, have been considering the implementation of CBDCs. CBDCs have been proposed as potential replacements for cash in island economies, according to previous statements made by the IMF’s Managing Director Kristalina Georgieva. CBDCs tap into the digital future Several countries have already implemented cross-border technology platforms to tackle these concerns and encourage digital currency payments…

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Filed under: News - @ June 19, 2024 9:30 am