The IMF is developing a platform for cross-border transactions with central bank digital currencies (CDBCs), Reuters has reported.
According to the institution's head, Kristalina Georgieva:
"CBDCs should not be fragmented national propositions... To have more efficient and fairer transactions we need systems that connect countries: we need interoperability."
This is the main reason why the IMF has started to create a global platform for national cryptocurrencies, she has said.
Fund specialists want central banks to agree on a single regulatory framework for CBDCs, which will ensure interoperability. Failure to agree on a common approach will create a vacuum that cryptos are likely to fill, according to Georgieva.
The IMF head has said that 114 central banks are in various stages of investigating CBDCs. Approximately 10 of them have already crossed the "finish line."
She has added:
"If countries develop CDBCs only for domestic deployment we are underutilizing their capacity."