IMF asks policy makers to consider Central Banks digital currencies

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The International Monetary Fund (IMF) said on Thursday that Central Bank Digital Currencies (CBDC) is one of the significant issues deserving consideration by policy makers.

Digital currency is a type of currency available in digital form. It can be used to purchase goods and services but can also be restricted to certain online communities.

This is coming as the Fund said less than one-quarter of central banks around the world are actively exploring the possibility of issuing CBDC and that so far, only four pilot projects have been reported.

Tobias Adrian, Financial Counsellor and Director of the Monetary and Capital Markets Department, IMF, stated this in his remarks titled, ‘Paving the Way for Fintech’, on Thursday in Belize City, Belize.

“Despite the challenge of achieving the right balance, every country — including the countries of the Caribbean — would be wise to prepare for and embrace the fintech revolution, in the hope of realizing its far-reaching social and economic benefits”, Adrian said.

“It seems clear that the case for CBDC adoption depends on country-specific circumstances. There doesn’t seem to be a “one size fits all” policy prescription.”

The Central Bank of Nigeria (CBN) on February 28, 2018 warned members of the public that virtual currencies are not legal tender in Nigeria

“We wish to caution all and sundry on the risks inherent in such activities”, Isaac Okorafor, director, corporate communications said.

Further to the circular issued by the Central Bank of Nigeria (CBN) on January 12, 2017, to Banks and other financial institutions on virtual currency operations in Nigeria, the Bank reiterated that cryptocurrencies such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin, Onecoin, etc and Exchanges such as NairaEx are not licensed or regulated by the CBN.

There are surely some positive aspects of adopting CBDC, … Read More...