The policy paper on CBDCs will include guidance and information on CBDCs, which could help countries develop their CBDCs.
The International Monetary Fund (IMF) has announced their plans to publish a CBDC handbook based on a policy paper on central bank digital currencies (CBDC), which will work as a guide for countries developing their CBDCs. IMF Deputy Managing Director Bo Li announced the same in one of his speeches, where he mentioned the growing demand for technical assistance on CBDCs from the IMF.
He stated how several central banks worldwide are on course to launch their own CBDCs, and that almost 40 countries have requested the IMF for assistance on the same. Their apprehensions ranged from pilots, objectives, design choices, and macro-financial implications. In view of the same, Li stated that CBDC capacity development was becoming essential to prevent digital divides.
“CBDC is likely to have profound implications for monetary policy and financial stability. CBDC could strengthen the usability, resilience, and efficiency of payment systems and increase financial inclusion. However, if poorly designed, CBDC could also lead to financial stability risks, data privacy and legal challenges, financial integrity and cyber risks, and central bank operational risks,” said Bo Li, due to which the IMF had taken the responsibility to ensure that digital money led to financial stability across countries.
He announced that the IMF had published a policy paper on CBDC, which will form the foundation for a CBDC handbook. The paper outlines the IMF Approach to CBDC Capacity Development. The Deputy Managing Director hoped the handbook could help countries on their path to developing CBDCs.