IMF Tao Zhang: CBDC has a great future

Digital currencies issued by the central banks of countries are more effective at carrying out transactions by minimizing costs and short-term transfers, said Tao Zhang, deputy head of the International Monetary Fund (IMF). They will become especially relevant for regions with a low level of development, since they will help to avoid high costs for the design of their payment systems, not in vain about 80% of central banks declared their readiness to issue such assets (according to a study by the Bank for International Settlements).

“Stablecoins can minimize price fluctuations by supporting their issuance of assets or by managing their supply using algorithms. Global stable coins are those that can be quickly scaled by using the existing client network. With the support of the Central Bank reserves and direct control of the regulator, such assets can become a safer means of calculation than fiat funds, ”said Tao Zhang.

According to the official, the regulator is stepping up research in this area, working with various international organizations and standard developers, such as the Financial Stability Board (FSB) and the Committee on Payments and Market Infrastructure (CPMI). He also acknowledged that the introduction of digital currencies of central banks will depend on the conditions created in a particular country, since it will contain a number of factors that are applicable directly to a particular location.