IMF: Central bank digital currencies will make cross-border payments more convenient

Bahrain, Georgia, Saudi Arabia and the UAE have already advanced to the proof-of-concept stage, and the Republic of Kazakhstan is ahead of the curve by completing its digital tenge project. The IMF believes that central bank digital currencies can expand the accessibility of financial services and reduce their costs by eliminating intermediary structures and stimulating competition:

“The accelerating exploration of CBDCs in oil exporting countries comes as classic cross-border payments pose challenges such as varying data formats and regional regulations, as well as complex compliance checks.”

The fund’s report emphasizes that choosing the appropriate functionality for implementing CBDC, eliminating people’s financial illiteracy, and increasing confidence in financial institutions are the main tasks for states working on the concept of national digital currencies. The introduction of digital currencies will be a long and complex process, and central banks need to be careful in implementation, IMF experts say.

Earlier, analysts at the International Monetary Fund said that residents of countries with restrictive financial regulations are increasingly turning to Bitcoin to safely carry out cross-border transactions.