The International Monetary Fund highlighted the growing number of stablecoin use cases and the potential of central bank digital currencies to help the Pacific Island countries.
The International Monetary Fund (IMF) believes in the potential of crypto to help nations in the Pacific Ocean. In a recent report, the IMF listed the benefits of stablecoin use cases along with central bank digital currencies (CBDCs). According to the IMF, the nations could leverage these products for their benefit.
These Pacific Island countries face many issues in remittances, payments, and unequal access to financial services. As a result, the IMF believes CBDCs and stablecoins could offer an alternative to them. It also described several nations in the region that were already exploring the potential of crypto. The international body described how digital money and the latest payment systems could lead to financial inclusion.
Regarding stablecoin use cases, it said, “Foreign currency–based stablecoins could be a realistic alternative for countries without their own currencies, though only with robust regulation and supervision.”
Kristalina Georgieva, the IMF’s managing director, has also spoken about the benefits of CBDCs. While presenting the IMF handbook on CBDCs, she described how CBDCs could help in cross-border transfer and replace cash. The IMF has also worked with international governments to explore CBDCs and presented research reports.
For instance, the IMF studied Nigeria’s CBDC, the eNaira, and published a detailed report on its usage and potential applications. The report recognized the Nigerian CBDC’s challenges and provided suggestions for its adoption.
Other examples include collaborating with the Central Bank of Jordan to release a CBDC. At the same time, the IMF has identified the growing importance of the crypto sector and emphasized the need to regulate it.
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