Cryptocurrencies

    Global policymakers continue to advocate for CBDCs despite the challenges

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    Despite the numerous setbacks and criticisms associated with central bank digital currencies (CBDCs), global financial officials are persistently advocating for their implementation.

    In November, representatives from bodies such as the International Monetary Fund (IMF), Bretton Woods Committee, and Bank for International Settlements (BIS) urged governments to pursue the development of CBDCs with tenacity.

    However, such enthusiasms have been criticised for ignoring the need for fundamental reforms to foster a freer financial system. IMF managing director Kristalina Georgieva called on policymakers to accelerate CBDC development.

    Simultaneously, Bretton Woods Committee chair Bill Dudley urged not only the US but also the BIS to establish an international CBDC standard.

    BIS Innovation Hub head Cecilia Skingsley dismissed criticisms of CBDCs as being a "solution in search of a problem," maintaining that they could prove beneficial in the future.

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