Yesterday, Bo Li, the Deputy Managing Director of the International Monetary Fund (IMF), described the level of interest in central bank digital currency (CBDC) as ‘unprecedented’. Forty countries have approached the IMF for assistance and it has engaged with almost 30.
The IMF sees one of its roles as CBDC capacity development. It released a paper around what it’s learned so far and plans to develop a CBDC Handbook to support its efforts. The 20 chapter handbook is funded by Japan, and it will release four or five chapters per year.
One of the key takeaways is the various motivations for CBDC interest, with countering the interest in crypto-assets coming top of the list. For advanced economies, the drivers include maintaining central bank involvement in digital payment systems, enhancing payment competition, and supporting tokenization. In contrast, emerging and developing economies see financial inclusion as a major factor.
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