16 May 2022 06:45, UTC.
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Kristalina Georgieva, managing director of the International Monetary Fund (IMF), called for a new public infrastructure of payment systems, including digital currencies.
Kristalina Georgieva gave an online presentation on “Confronting Fragmentation: How to Modernize the International Payment System.” The IMF chief stated that in today’s environment, “the world must think like a climber, using the most modern equipment, adapting to the terrain and relying on its team.
She added that countries need to work together to meet infrastructure challenges and suggested creating a public payment system based on digital platforms. This, she said, would help counter the fragmentation of the international monetary system. The new platform would help “connect” the different forms of money that countries would use and legally support, making cross-border payments more efficient, secure and inclusive.
“It will be a new way of connecting people, markets and economies in a digital world that includes deposits in commercial banks, central bank digital currency and even some stabelcoins – if they are well designed and regulated,” Georgieva said.
At the same time, the IMF chief noted that the higher efficiency of the new payment system could entail risks, from greater “contamination” of the financial market and the effects of inadequate valuation, to sudden reversals of capital flows. There is also a growing risk of substitution of national currencies with digital surrogates. For example, as in developing countries, where business entities prefer to use foreign currency for transactions and savings. And as digital assets become more accessible, the risk of national currency substitution increases significantly.
“From the outset, digital platforms must be calibrated to the needs and policy goals of a particular country. They should include appropriate risk mitigation measures,” said Kristalina Georgieva.
The other day, the Securities and Exchange Commission of Nigeria (SEC) changed the registration procedure for digital asset platforms (DAOP), service providers (VASP) and exchanges that offer digital assets.
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