{"id":3421,"date":"2023-07-01T04:18:55","date_gmt":"2023-07-01T02:18:55","guid":{"rendered":"https:\/\/www.dhcab.com\/?p=3421"},"modified":"2023-07-01T04:18:55","modified_gmt":"2023-07-01T02:18:55","slug":"international-monetary-fund-working-hard-on-a-global-central-bank-digital-currency-platform","status":"publish","type":"post","link":"https:\/\/www.dhcab.com\/?p=3421","title":{"rendered":"International Monetary Fund \u2018working hard\u2019 on a global Central Bank Digital Currency platform"},"content":{"rendered":"
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The International Monetary fund managing director proposed a currency that would require global governance by what one Bitcoin analyst has referred to as a ‘group of unelected bureaucrats.’<\/p>\n

The International Monetary Fund (IMF) is \u201cworking hard\u201d on a \u201cglobal CBDC (Central Bank Digital Currency) platform,\u201d the IMF managing director announced Monday.
\u201cIf we are to be successful, CBDCs could not be fragmented national propositions,\u201d Kristalina Georgieva said during a policy roundtable discussion with Bank Al-Maghrib in Rabat, Morocco on CBDCs.
\u201cTo have transactions more efficient and fairer, we need systems that connect countries. In other words, we need interoperability,\u201d she said in reference to a global CBDC.
\u201cFor this reason, at the IMF we are working hard on the concept of a global CBDC platform to trade and to manage risks,\u201d she continued.
Georgieva touted CBDCs as \u201cgiving more people access to financial services, and at a lower cost, enhancing payment system \u201cefficiency\u201d and \u201cresilience,\u201d and making cross-border payments \u201ccheaper and quicker\u201d while reducing the number of needed intermediaries.\u00a0
She cautioned, however, that \u201ceasy access to foreign CBDCs could lead to risks of currency substitution and capital flow volatility,\u201d suggesting that a global CBDC would enhance \u201cinternational economic stability,\u201d a goal the IMF has tasked itself with promoting, she noted in a press release statement on the roundtable discussion.<\/p>\n

Asked whether she thought \u201ceconomic integration\u201d could happen without CBDCs, Georgieva admitted that progress on the matter could be made either way but said, without delving into specifics, that if CBDCs are only used domestically, \u201cwe are under-utilizing their capacity.\u201d
Georgieva was also asked what kind of timeline for a global CBDC platform could be expected but did not address the question.
She pointed out that 114 central banks are at one stage or another of exploring CBDCs and that about 10 have already \u201ccrossed the finish line,\u201d adding, with a smile, that the largest CBDC pilot program is taking place in China, with 118 million participants.
Georgieva listed three main \u201cpolicy\u201d challenges in bringing about cross-border CBDC payments: \u201cCommon settlement asset,\u201d \u201ccommon legal and regulatory frameworks,\u201d and \u201cshared infrastructure,\u201d suggesting global governance can aid the rollout of a global CBDC.
In April, the IMF announced that it was creating a CBDC handbook to help central banks and governments across the world with their CBDC rollouts, with former People\u2019s Bank of China deputy governor and current IMF deputy managing director Bo Li saying the handbook would \u201chopefully help countries make as well-informed decisions as possible\u201d regarding their CBDCs.
He boldly proposed that CBDC transactional data could be used like it is in China to create social credit scores.\u00a0
\u201cThose transaction data in terms of how many coffees I drink every day, where I buy coffee, do I use UBER every day and what kind of working hours I have. Those non-traditional data can be very useful for financial service providers to give me a credit score,\u201d Li said in October.
Sam Callahan, a lead analyst for Swan Bitcoin, has pointed out on Twitter that the Bank of International Settlements (BIS) has been designing an international CBDC program, or \u201cmulti-CBDC system,\u201d since 2020, with \u201congoing pilot projects\u201d like Project mBridge\u201d that are \u201cexploring how one common system can be used to control & facilitate the flow of international payments.\u201d
Callahan noted that while \u201cno one can control the protocol\u201d in Bitcoin \u2014 which he argued solves problems that CBDCs are ostensibly meant to address \u2014 with a multi-CBDC system, the model proposed by the BIS would be governed by a centralized body, which Callahan describes as \u201ca group of unelected bureaucrats.\u201d<\/p>\n

“The BIS isn’t interested in an already functioning solution like Bitcoin because it removes the need for intermediaries altogether, disrupting their entire business model when it comes to international payments. Bitcoin takes power away from institutions like the IMF and BIS.”<\/p>\n

So the design the BIS has chosen to run with, and which lies at the heart of all of its ongoing pilot programs, is CBDC “Model 3”. Model 3 is the most centralized of all of the BIS designs, is governed by one rulebook, & gives governance power to a “single set of participants.”<\/p>\n

He further highlighted the fact that \u201cin the various BIS CBDC pilot projects, it is the BIS itself who is appointed as the platform operator,\u201d even while the BIS has acknowledged the risk that \u201cpublic authorities,\u201d including central banks, \u201cwould use CBDC systems as an instrument for state surveillance and control.\u201d
Earlier this month, the World Economic Forum (WEF) issued a report titled \u201cReimagining Digital ID\u201d in which it framed digital ID as a necessary component of CBDCs.
\u201cSome nations are beginning to understand digital ID as a prerequisite to developing a central bank digital currency (CBDC) and other payment innovations,\u201d stated the document, according to The Sociable.
The report admitted that \u201cthe greatest risks arising from digital ID are exclusion, marginalization and oppression,\u201d and further notes that, even if digital IDs are not mandated by law, citizens could still be coerced into using them as they would otherwise be excluded from many parts of society.\u00a0
\u201cAs an ID system expands, the consequences of not participating in it can become so severe as to make registration effectively unavoidable,\u201d the report states. \u201cWhen access to a good or service is conditioned upon the possession of a form of ID, and that ID is widespread, individuals may be effectively coerced into obtaining that form of identification, even if there is no legal basis for requiring it.\u201d\u00a0
This is something that many suffered firsthand during the COVID crisis, as the unvaccinated were in many countries banned from entering restaurants, stores, cultural events, and even their workplaces in an attempt to coerce them into taking the COVID shots.\u00a0
The Atlantic Council has published on its website a Digital Currency Tracker by which the CBDC status and progress of countries around the world can be monitored. As of June 20, 2023, 11 countries have fully launched a CBDC, 18 have begun pilot testing, and 32 are in the process of developing a CBDC, including the U.S. and most of Europe.<\/div>\n<\/div>\n

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The International Monetary fund managing director proposed a currency that would require global governance by what one Bitcoin analyst has referred to as a ‘group of unelected bureaucrats.’ The International Monetary Fund (IMF) is \u201cworking hard\u201d on a \u201cglobal CBDC (Central Bank Digital Currency) platform,\u201d the IMF managing director announced Monday.\u201cIf we are to be […]<\/p>\n","protected":false},"author":1,"featured_media":3422,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":["post-3421","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-issues"],"_links":{"self":[{"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/posts\/3421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3421"}],"version-history":[{"count":0,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/posts\/3421\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/media\/3422"}],"wp:attachment":[{"href":"https:\/\/www.dhcab.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}