The Philippines has joined countries exploring central bank digital currencies via a partnership with the International Monetary Fund, believing that a state-backed currency is a key to solving cross-border friction.
IMF says Africa stands at great risk if it fails to rein in its Bitcoin industry—the fastest growing globally—especially for countries making BTC legal tender.
India recognizes the benefits of the digital asset sector but says a tech-driven framework needs to be crafted to ensure that technology in the industry will not be misused.
BIS and IMF say that using CBDCs could solve many challenges with cross-border movement of funds, but question whether central banks will work together.
IMF examined the environmental impact of blockchain network designs, highlighting that some blockchains have improved the energy efficiency of payments infrastructure while others are inefficient.
Speaking at a webinar series organized by the IMF, RBI Deputy Governor T. Rabi Sankar stated that the Indian central bank believes CBDCs could kill private digital currencies.
The paper is a result of consultations made both with local digital currency industry key players and international organizations like the IMF and the World Bank.
Bahamas' central bank digital currency currently makes up about 0.1% of the country's money supply, prompting the IMF to recommend that the Caribbean country accelerate its CBDC education campaign and expand its capacity.
The International Monetary Fund says the move raises major legal and economic policy challenges, even as experts, political and economic leaders question the country’s ability to implement BTC payments.
The IMF recently released a report that Russia might have found a way to evade international sanctions stating that block reward mining activities could be used to evade economic boycotts.
Georgia’s central bank is working with the IMF on the regulations, which will include registration of VASPs, compliance testing, and AML control requirements.