IMF: If designed properly, CBDC can enhance the accessibility, resilience, and efficiency of payment systems.

On June 22nd, according to a report by the International Monetary Fund (IMF), interest in central bank digital currencies (CBDCs) is on the rise in Latin America and the Caribbean (LAC), while the use of cryptocurrencies varies across the region. The risks associated with crypto assets vary depending on the country. The IMF has provided guidance on key elements for appropriate policy responses to mitigate risks while leveraging the potential benefits of crypto asset-related technological innovation. If designed appropriately, CBDCs can enhance the availability, resilience, and efficiency of payment systems, and increase financial inclusion in Latin America and the Caribbean. While some countries have completely banned crypto assets considering the risks they pose, this approach may not be effective in the long run. Instead, the region should focus on addressing the driving factors for crypto demand, including unmet digital payment needs of citizens, and increase transparency by recording crypto asset transactions in national statistical data.