International Monetary Fund (IMF) unveils the development of a “new class” CBDC platform. A novel blueprint for a cross-border payment system that leverages a single ledger for recording transactions involving central bank digital currencies (CBDC) has been proposed by the International Monetary Fund (IMF). Such a system will also enable improved information management and programmability.
IMF managing director Kristalina Georgieva revealed that the IMF is actively developing a platform dedicated to facilitating transactions between countries via central bank digital currencies (CBDCs). This move reflects the IMF’s commitment to fostering global interoperability by encouraging central banks to establish a unified regulatory framework for digital currencies.
Georgieva underscored the need for interconnected systems and global interoperability to achieve more efficient and equitable transactions. Further, she emphasized the importance of avoiding fragmented national approaches when it comes to CBDCs. She stressed that for transactions to be truly efficient and fair, it is crucial to establish systems that connect countries and enable seamless interoperability.
Amid the revolutionary move, the crypto community backlash against IMF’s step in favour of CBDC. A community member described CBDCs as a “dystopian nightmare” and argued that they would give governments complete control over individuals.
According to a Reddit user, the whole project is just a new attempt by the IMF to gain more control, arguing that the organization is now using issues that they’ve “ignored for decades,” like financial inclusion, as a “Trojan horse” to push CBDCs forward. Another miner wrote: “The IMF is once again back to their old game. With nations exploring CBDCs, they see this as their next opportunity to amass more power and control.”
Another Reddit user highlighted that this would give government agencies complete control over individuals, as they could see every transaction and allow the IMF to turn off access to their own money whenever they want. One person expressed joy that they haven’t seen individuals advocating for CBDCs, stating that “no one wants this” centrally managed and controlled money.
Further, the backlash was seen on Twitter as well, one person criticized the IMF’s latest move by saying that the new platform sounds very similar to a “sh*tcoin.” The Twitter user argued that governments or the IMF should not be able to decide on what “the best money is.“
A total of 114 central banks worldwide are currently exploring the potential of CBDCs, with approximately 10 of them already making significant progress in their development. India is one of the countries that is running a pilot project to assess and evaluate the scope of CDBC.