I always talk about crypto as assets and not as currencies, the IMF chief said. (FILE)
davos:
IMF chief Kristalina Georgieva warned on Monday against confusing crypto products with currency, saying that anything not backed by a sovereign guarantee can be an asset class, but not a currency, as she claimed that Bitcoin cannot be ‘money’ just because it’ coin’. in his name.
During a session on central bank digital currencies in Davos at the World Economic Forum’s annual meeting, she said crypto products may offer faster services at a much lower cost and better inclusivity, but that also involved separating apples from bananas. and regulation would be key there.
During the same session, the governor of the Central Bank of France, Francois Villeroy de Galhau, said that the banknotes were also a great technological advancement when they were introduced.
“I always talk about crypto as an asset and not as a currency. For every currency, someone has to take responsibility, but there is no one in the case of so-called cryptocurrencies. Also, currencies have to be highly trusted and generally acceptable,” he said.
“We can’t have currency on one side and trust on the other. They have to be together,” he said.
When asked about people’s loss of confidence in central banks, he replied, “My impression is that people are also losing confidence in crypto and the loss of confidence is more than that in central banks.” About CBDCs, he said they would simply be payment methods and not investment assets.
The governor went on to say there was a reason the last word in CBDC was “currency” and not “currency.”
He also said the world would still rely on banknotes for the next century, despite the advent of CBDCs.
The IMF chief also seemed optimistic about the future of banknotes, in addition to digital money, citing an example that when the war in Ukraine started, there was a huge increase in demand for banknotes due to fears of cyber-attacks.
Experts believe that central bank digital currencies (CBDCs) have the potential to reshape financial systems and change the landscape of payments and banking. More countries are experimenting with CBDCs and some are starting to bring them to market, potentially offering lessons for the rest of the world.
The panelists discussed the macroeconomic and geopolitical implications of the CBDC rollout and how the public and private sectors can work together to ensure that the development of CBDC ultimately benefits consumers and minimizes risks to financial stability.
(This story was not edited by DailyExpertNews staff and was generated automatically from a syndicated feed.)
