CBDCs have aroused the curiosity of many countries over the past few years. Faced with the growing demand for advice, the IMF will publish a comprehensive manual on this subject. It will improve the capacities of CBDCs to avoid the digital divide. Those interested will have to wait four to five years before the publication of the manual.
Growing demand for IMF advice
The IMF has seen a high demand for advice on CBDCs over the past two years. More than 40 countries have already contacted the IMF about this. The institution then plans to publish a comprehensive handbook on central bank digital currencies in response to this request, said Bo Li, deputy managing director of the IMF. In a recent speech, he said there was an urgent need to meet the needs of central banks planning CBDCs. The IMF has thus engaged with nearly 30 countries that have requested advice over the past two years.
Mr. Li believes that it is essential to develop the capacities of CBDCs to avoid the digital divide. Indeed, a bad design of a CBDC could turn out to be dangerous. On the other hand, a correct implementation will enhance the usability, resilience and efficiency of payment systems. This will also increase financial inclusion.
The CBDC Handbook will be descriptive and informative
The IMF official indicated that the manual will be more descriptive than prescriptive. It will contain information, experiences, empirical results and evaluation frameworks of CBDCs. The IMF report presents a provisional table of contents for the manual. It contains 19 chapters divided into major sections. The manual addresses both political and technical issues. It should be completed over a period of four to five years.
While policymakers are focused on more concrete questions related to CBDCs, the recommendations of the International Monetary Fund are proving more adapted according to the situation of each country. The IMF will prioritize countries accelerating the development of CBDCs that have capacity constraints or insufficient regulatory standards.
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