IMF chief Kristalina Georgieva on Monday warned against confusing crypto products with currency, saying that something that is not supported by a sovereign guarantee could be a asset class but not a currency, as she insisted that bitcoin could not be ‘money’ because it is a ‘currency’. ‘Got it. In its name
He said in a session of the central bank’s digital currency at the annual meeting of the World Economic Forum in Davos that crypto products could provide services at much lower cost and faster inclusion, but that this required separating apples from bananas. And regulations will be important there.
In the same session, the Governor of the Central Bank of France, Franোয়াois Villarre de Galhous, said that the introduction of banknotes was a great technological breakthrough.
“I always refer to crypto as an asset, not a currency. For any currency, someone has to take responsibility, but no one has to deal with so-called cryptocurrencies. Also, currencies need to have a lot of trust and they need to be universally accepted,” he said.
“We can’t have currency on the one hand and faith on the other. They need to be together,” he said.
Asked about the loss of public confidence in central banks, he replied, “My guess is that people are losing confidence in crypto as well and have lost confidence more than central banks.” Regarding CBDCs, he said they would be merely a method of payment and not an investment asset.
The governor further said that one of the reasons why the last word in CBDC was not ‘currency’ was ‘currency’.
He added that despite the advent of CBDCs, the world would still rely on banknotes for the next century.
The IMF chief was optimistic about the future of banknotes as well as digital money, citing an example that when the Ukraine war broke out, the demand for banknotes increased dramatically for fear of cyber attacks.
Experts believe that the Central Bank Digital Currency (CBDC) has the potential to restructure the financial system, make payments and change the banking landscape. Many more countries are experimenting with CBDCs and some are starting to bring them to market, potentially providing lessons for the rest of the world.
The panelists discussed the macroeconomic and geopolitical implications surrounding the CBDC’s roll-out and how the public and private sectors could work together to ensure that CBDC development ultimately benefits consumers and reduces the risk of financial instability.
(This story was not edited by NDTV staff and was automatically generated from a syndicated feed.)