/View.info/ Central banks of many countries are moving towards creating their own digital currencies
On June 20, MBF director Kristalina Georgieva spoke with the heads of African central banks at a conference in Rabat (Morocco). Among other things, she said that the Fund is trying to somehow coordinate the work of individual countries on the introduction of central bank digital currencies (CBDCs), in order to subsequently facilitate cross-border transactions through CDBCs: “The CBDC should not have fragmented national offerings .. “To have more efficient and fair transactions, we need systems that connect countries, we need interoperability.”
One of the areas of work of the Central Bank Coordination Fund in the field of CBDC is the “Guide to CBDC”. At the spring session of the IMF and the World Bank in April this year, the prospectus “Guidelines” was announced. It is intended to be understandable even for laymen a document containing at least 19 chapters to be published gradually over the next four to five years.
The guide will list the most frequently asked questions related to CBDCs, including: 1. CBDC policy objectives and operational framework;
2. Key requirements and readiness for CBDC issuance, such as legal considerations, cyber resilience, central bank governance and regulation and oversight;
3. Design approaches and technologies;
4. Potential Macro-Financial Implications of CBDC.
„The Guidance Chapters will primarily provide a framework for structuring the CBDC study, and the recommendations will be based on international best practice and will depend on country circumstances,” the IMF said in a press release.
The central banks of more than a hundred countries are moving towards creating their own digital currencies, and the IMF, as the “conductor”, should manage this process, including with the help of the aforementioned “Guidelines”.
K. Georgieva said that the Foundation has started work on creating a global CBDC platform. As she noted, such a platform should “ensure interoperability” of the digital currencies of various central banks. CBDCs will promote financial inclusion and make remittances cheaper.
„ CBDCs can help increase inclusion, strengthen the resilience and efficiency of national payment systems, and make cross-border payments cheaper and faster. In doing so, it is important that CBDCs do not become fragmented national offerings. For this reason, the IMF has started work on the concept of a global CBDC platform that will ensure the compatibility and security of payments in external and internal financial markets “, said Kristalina Georgieva.
At the CBDC Policy Roundtable at the Rabat Conference, Tobias Adrian, Director of the IMF’s Monetary and Capital Markets Department, presented a new concept for a cross-border payments platform. It includes a payment system scheme that uses a single ledger to record CBDC transactions. According to Adrian, the “XC platform” will have a single order book against which digital representations of central bank reserves in any currency can be exchanged.
But central banks need to hurry, because cryptocurrencies can start to fulfill this function (cross-border transfers). And the latter, according to the head of the IMF, are not reliable instruments. Cryptocurrencies (if they are not backed by anything) are a typical tool for speculation.
The IMF is not calling for a ban on cryptocurrencies. The fund proposes that central banks more strictly control the issuance and circulation of private digital currencies. And also make CBDC a more attractive currency than cryptocurrencies.
However, private digital currencies continue to advance. Classically decentralized cryptocurrencies such as Bitcoin have also been lauded as a potential tool for cheaper remittances. El Salvador made Bitcoin legal tender in 2021 and launched its state-sponsored Chivo wallet, focusing on this benefit. However, the IMF has never been a supporter of the introduction of Bitcoin in El Salvador due to concerns that the high volatility of this currency could destabilize the economy. However, Salvadoran President Naib Bukele did not react or respond to the IMF’s advice.
In parallel, the IMF has begun work on a universal, supranational digital currency. An organization called The Digital Currency Monetary Authority (DCMA) announced at the IMF-WB Spring Session this year that it intends to launch the Unicoin Universal Currency Unit (UMU), which will be legal tender for making cross-border payments. Almost no one knew what DCMA was. It turns out to be a global leader in digital currency protection and monetary policy innovation for governments and central banks.
The DCMA includes sovereign states, central banks, commercial and retail banks and other financial institutions. Unfortunately, there are no details about the composition of the organization and its legal status in the open sources.
Note that there are still no official statements from the fund to participate in the UMU supranational digital currency project. But there are many indirect signs that a cooperative relationship has been established between the IMF and the DCMA. It is enough to note the very loyal attitude of the Fund to the UMU currency: “UMU is in line with the IMF’s latest policy recommendations on crypto assets”. According to IMF officials and DCMA executives, UMU is a combination of the best qualities of private cryptocurrencies and CBDC.
The first comments on the universal currency have already appeared. On April 13, the article was published IMF unveils new ‘global currency’ known as ‘Universal Currency’ which should “revolutionized“the world economy.
Its author, Michael Snyder, begins the article thus: “A new global currency has just been launched, but 99 percent of the world’s population has no idea what just happened.” And further: “This should be a wake-up call to all of us because widespread adoption of a new ‘global currency’ would be a huge step forward for the globalist agenda. The IMF did not create this new currency, but it was introduced at a major IMF meeting earlier this week …”
Snyder admits he didn’t know there was an organization called DCMA until now. It turns out that the CBDC world also has its own conspiracy theories. The author of the article emotionally concludes about the UMU project: “A secret cabal of international banks and national governments conspired to shove this new currency down our throats.”
Experts are already wondering: what if the UMU could be put into orbit?
– It could replace the weakening US dollar as the world currency.
– This will be the analogue of the “bancora” – the supranational currency that was proposed at the Bretton Woods conference in 1944 by the English economist John Keynes (the proposal was rejected because the Americans imposed their alternative – the US dollar).
– The issuer of this currency may be the International Monetary Fund (in which case it may be renamed the World Central Bank).
– Other currencies (national currencies) will eventually be phased out.
– Accordingly, the central banks of the individual countries will be abolished as unnecessary (only the World Central Bank will remain).
P.S. The UMU digital currency is now a 99% finished product. As the specialized information resource cryptocompass.com reported on May 27 of this year, “the Unicoin pilot program is currently running in Latin America and Africa, and a full product launch is planned for the next six months.”
Translation: ES
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