With a surge of demand for assistance with central bank digital currencies (CBDCs), the International Monetary Fund (IMF) has taken an initiative to provide guidance to such countries, with plans to produce a handbook. Deputy managing director Bo Li highlighted the importance of such an endeavor, seeing immediate need for central banks in their efforts to create CBDCs.
As the demand for assistance with CBDCs is increasing, the IMF has devoted resources to providing assistance to nearly 30 countries in the past two years, with more than 40 states having contacted the organization. In the upcoming handbook, the IMF will be less prescriptive, instead offering information on experience, empirical findings, and frameworks to evaluate CBDCs and evaluate any risks associated with it. In order to complete this project, the IMF is considering a four to five year period of work, with Japan providing major funding.
Furthermore, the proposed handbook will feature 19 chapters categorized into different sections, both dealing with policy and technical questions. The IMF will prioritize services for those countries which have already made substantial progress in CBDC development and have high demand for help, whether it be related to capacity-constraints, regulatory standards or other. Therefore, the IMF handbook and its results will serve to benefit countries in the greater effort to bridge the empowerment of CBDCs and its potential impact on fin stability and monetary policy applications.
Naomi Gonzales
- 2023-04-13
IMF Launches Handbook Efforts for CBDC Initiatives
The IMF has taken an initiative to provide guidance for the surge in demand for assistance with central bank digital currencies (CBDCs). The IMF’s handbook will guide countries on experience, empirical findings, and frameworks to evaluate CBDCs and evaluate any risks associated with it.
