The central bank’s digital currency (CBDC) is not far behind being a hot topic in line with the development of cryptocurrencies.
In the latest news, the managing director of the International Monetary Fund (IMF), Kristalina Georgieva told the introduction of the CBDC should be done regularly based on its settings as these assets may not work in other countries.
For example, some countries such as China, Sweden, and the Bahamas that have introduced the CBDC, can be said to have almost achieved success.
However, there are several aspects that are of concern when all three are faced with the early implementation of CBDC in their respective countries.
Georgieva claims that the prudent implementation of CDBC offers greater resilience for local financial networks, and even reduces transaction costs.
As most figures around the world consider cryptocurrencies ‘dangerous’ due to ‘decentralization’ and volatile liquidity, this woman also believes CBDCs are much safer as they are controlled by the central bank and not too volatile.
But, Georgieva stressed: "The implementation of CBDC is still too early and we don't know how far, how fast it will grow."
Undoubtedly most countries, about 100 central banks around the world have already started ‘rushing’ to catch up with China in the CBDC manufacturing race. Among them: South Korea, India, Malaysia, and Brazil.
Meanwhile, Sweden has already launched its CBDC, eKrona in September 2021.
