IMF Says Stablecoins and CBDCs Can Benefit Distant Countries
The International Monetary Fund (IMF) highlights in its report that Central bank digital currencies (CBDCs) and stablecoins could significantly enhance the availability and quality of financial services in Pacific island countries.
The report underscores the challenges faced by numerous jurisdictions and microstates in the Pacific Islands region, including limited access to financial services, which perpetuates poverty and inequality, exacerbated by their reliance on remittance flows and vulnerability to the decline in interstate banking relationships.
The IMF suggests that these countries can leverage the “digital money revolution” by investing in payment systems and blockchain technologies to stimulate their economies.
While the report primarily focuses on CBDCs, it also acknowledges the potential use of certain stablecoins.
However, the IMF cautions against small Pacific island nations issuing their own sovereign “stable coins” due to limited supervisory capacity. Instead, the report suggests considering the use of private stablecoins like USDT from Tether as a viable alternative.
