"That's why many countries have started playing around with CBDC, but Malaysia is not ready yet?"
Speaking at the Singapore Fintech Festival yesterday, International Monetary Fund (IMF) Managing Director Kristalina Georgieva, who presented her bold vision, said central bank digital currency (CBDC) could replace cash in the global financial system.
In addition to studying the CBDC, Georgieva also revealed that the country is currently in the process of developing regulations to guide the development of digital money.
Pleased to be informed that 60% of countries are exploring CBDC to increase their financial inclusion, the IMF director commented, adding that CBDC can help close the financial gap including promoting more inclusive growth if designed well.
Following the importance of cross-border payments, the IMF and the World Bank are ready to publish plans to support countries to increase cross-border payments in the future.
It is well known that technological advances such as artificial intelligence (AI) and blockchain can not only increase the benefits of CBDC but also help advance financial inclusion in making it easier and faster to generate credit reports.
Georgieva also expressed her confidence in the tokenization of financial assets that could allow CBDC to be used in wholesale transactions.
Although the IMF has previously been cautious and skeptical of digital assets, the organization in September 2023 began outlining a roadmap to address the risks crypto poses to financial stability.
