International Monetary Fund (IMF) executives have lauded the qualities of the Central Bank Digital Currency (CBDC). According to a publication by the body, they have attributed several qualities to the digital currency, including its adaptability and openness. In the same vein, banks worldwide have also thumbed up the currencies to revamp and improve the entire cash system. In the publication, the IMF noted that the technical quality and the trust of Central banks would make the monetary system rich.
IMF executives predict a bright future for CBDCs
According to the publication, IMF executives noted that adding digital technology to the fiat market will ensure a bright future for the economy. Aside from the IMF executives, others involved in the publication are John Frost and Hyun Song Shin with the Bank of International Settlements (BIS).
A recent study from the BIS showed that digital assets are slightly ahead of the physical cash system when it comes to an unprecedented level of monetary value. However, the executives pinpointed that some of the issues plaguing the digital assets from achieving a wider adoption are the congestion in the mechanism. Aside from that, most people are not too upbeat when it comes to using volatile assets in their daily lives. This is what CBDC will change.
Analysts predict market upturn
According to the body, digital currencies are slightly better than crypto and will provide qualities that users in the market need. The statement mentioned that using the trust provided by the banks as a background, they can use these technologies to achieve a better monetary system. The executives also advised that banks start using tokenization to help users buy diverse physical currencies.
The body also noted that the market has slowed down in the last couple of days. With this, they have predicted the crypto market is already primed to witness a recession in the coming days. Over the last few weeks, analysts have predicted that the crypto market could witness a massive upturn should things change across economies. However, the IMF study showed that the recent issues surrounding companies like Voyager and Celsius did not significantly impact the fiat market.