The International Monetary Fund (IMF) has called on countries to quickly adapt to the digital transformation of fiat currencies, emphasizing the growing importance of digital assets in the global financial landscape. IMF Managing Director Kristalina Georgieva highlighted the need for governments to embrace central bank digital currencies (CBDCs) while maintaining a clear distinction from unbacked crypto assets like Bitcoin.
Speaking at a panel dedicated to cryptocurrencies, Georgieva described the digitization of national currencies as a “very positive and powerful” trend. However, she warned that Bitcoin should not be considered a reserve asset due to its volatility and speculative nature.
The IMF also issued caution regarding stablecoins, noting that their widespread adoption could disrupt traditional lending, complicate monetary policy, and trigger capital outflows from some of the world’s most secure assets. Stablecoins pegged to the US dollar, for instance, could reduce central banks’ control over interest rates, limiting their ability to manage inflation effectively.
Additionally, Georgieva pointed out that the rise of stablecoins might reshape the bond market, boosting demand for specific debt instruments while altering the structure of traditional credit markets.
This statement follows Georgieva’s earlier warning in May 2024 that artificial intelligence could hit the labor market like a “tsunami,” highlighting the IMF’s ongoing focus on emerging technological trends and their economic impact.
