We did a survey of our membership, and 110 countries are looking into CBDCs at some stage,” Managing Director of International Monetary Fund (IMF), Kristalina Georgieva reveals. Majority of central banks are exploring digital currencies, she adds. Many as 110 countries are currently investigating a CBDC while some countries are already developing it.

At a virtual conference hosted by Bocconi University on Oct 5, IMF is said to be studying central bank digital currencies ( CBDCs) and digital currencies as a whole from the perspective of macroeconomic stability. Stablecoins will “fill the digital gap in privately issued money,” Georgiaeva emphasized that Bitcoin (BTC) and other cryptocurrencies are assets, rather than money.

However, for CBDCs to succeed, price volatility is a major concern, and public trust, as well as legal and regulatory frameworks are important, she said. In a recent IMF report, issuance of central bank digital currencies is projected to facilitate financial stability in emerging markets and developing economies.

CBDCs are a type of cryptocurrency, but issued by a central bank. It is usually a known as stablecoin which has its value linked to a country’s national currency. The Bahamas became the first country in the world to issue a CBDC at the end of last year while European Central Bank is also considering the development of an e-euro.

Meanwhile, Nigeria has developed its e-Naira which will be officially launched soon, after it was  postponed in respect of the country’s independence celebration. However China has been testing its e-yuan or e-renminbi for some time now.


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