The International Monetary Fund (IMF) asserts that central banks may be planning to issue digital currencies in the near future, as reported by the IMF on June 27
This paper is based upon a survey by the IMF/World Bank, which sought answers from all financial institutions in all member countries. According to the full paper, the conclusions are based in part upon the 96 received responses.
According to the paper, central banks from various countries are looking into implementing some type of Central Bank Digital Currency (CBDC). According to reports, Uruguay has launched a pilot CBDC program, while other countries such as the Bahamas, China and Eastern Caribbean Currency Union have begun testing their systems.
A number of countries are also reportedly studying the possible impact of CBDC on a nation’s financial stability and its banking sector. They are also examining the possibility of monetary policy transmission.
Further, the report notes that different motivations exist for offering CBDC. Emerging economies, for example, are trying to lower banking costs and offer banking services to those who are not banked with CBDC’s assistance. As cash’s frequency decreases, developed countries are reportedly looking for an alternative.
A similarity was also found in the report. Most central banks plan to issue an anonymous CBDC. This is mainly because institutions want the transaction to be traceable by authorities. Some are also considering dividing tokens into smaller groups that can be used for large transactions and holdings. Only these tokens will be traceable.
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