• Funding
  • Investing
  • Lending
  • Insurance
  • Banking
  • Wealth
  • Fintech
  • Venture
  • Crypto
Subscribe
No Result
View All Result
crypto
  • Crypto Coins
  • Crypto Trading
  • Bitcoin
  • Blockchain
  • DAPP
  • Crypto Investing
Home News Feed Blockchain News

IMF Believes Central Banks Need Strong Legal Frameworks for CBDCs to Work

Blockchain NewsbyBlockchain News
December 10, 2020

The issuance of central bank digital currencies (CBDCs) by apex global banks has become a hot topic in the crypto space, and the International Monetary Fund (IMF) has delved into it with some precautionary measures.

Webp.net-resizeimage - 2020-11-21T235727.143.jpg

The IMF believes that strong legal frameworks are necessitated because CBDCs pose reputational, financial, and legal risks for central banks. 

A race against time

The issuance of CBDCs seems to be a race against time because, in the eyes of many nations, owning a CBDC is instrumental in having control of the global markets. This can be shown by the fact that the Bank for International Settlements (BIS), along with seven central banks, recently released a report identifying the foundational principles necessary for any publicly available CBDCs to help central banks meet their public policy objectives.

The IMF has, however, advised central banks to tread with caution because they may be jumping the gun by overlooking some essential legal frameworks needed for a CBDC to work. The global monetary organization noted:

“First, most central bank laws do not currently authorize the issuance of CBDC to the general public. Second, from a monetary law perspective, it is not evident that “currency” status can be attributed to CBDC.”

Monetary law poses some challenges

The IMF affirmed that the monetary law is not straightforward because it triggers fundamental legal policy difficulties compared to the central bank law, which can be solved using simple reforms. Furthermore, it acknowledged that a CBDC’s design features will determine the outline of the legal framework. 

Once rolled out, CBDCs are expected to drive the financial inclusion of nearly 1.7 billion people left out of the banking system. This is because CBDCs are digital assets, which are pegged to a real-world asset and backed by the central banks meaning that they represent a claim against the bank exactly the way banknotes work. Central banks will also be in full control of the supply. 

Image source: Shutterstock Read The Original Article on Blockchain.News

Tags: BISCBDCCryptoIMF

Related Topics

Stocks making the biggest moves midday: Poshmark, JPMorgan, Wells Fargo, Zoom, Spotify & more

Bitcoin

Donald Trump Banned From Twitter in Final Days of Presidency

Prev Next

You May Like

Stocks making the biggest moves midday: Poshmark, JPMorgan, Wells Fargo, Zoom, Spotify & more

Bitcoin

Donald Trump Banned From Twitter in Final Days of Presidency

Investing

Fintech start-up SoFi to go public via SPAC backed by Chamath Palihapitiya

Bitcoin

Total Cryptocurrency Market Value Hits Record $1 Trillion

Financial News

Bitcoin

ENCORE: Luke Gromen on the History and (Declining) Future of the Global Dollar System

CoinDesk
by CoinDesk
Personal Finance

Business owners expecting paycheck protection loan forgiveness can’t deduct expenses

CNBC News
by CNBC News
Personal Finance

7 money moves to make now to start the new year strong

CNBC News
by CNBC News
Bitcoin

Central Bankers, Experts Outline Possible Scenarios for CBDC Adoption

CoinDesk
by CoinDesk
Blockchain News

Ripple to Cash In One-Third of its Stake in MoneyGram

Blockchain News
by Blockchain News
Personal Finance

Shareholders challenge the companies they invest in to promote good in the world

CNBC News
by CNBC News
Bitcoin

Morgan Creek CEO Says Bitcoin Doing ‘Extremely Well’ Due to Fed Reserve’s Dollar Devaluation

CoinDesk
by CoinDesk
Bitcoin

Square’s Cash App Q3 Report Attributes 80% of $2 Billion Revenue to Bitcoin

Blockchain News
by Blockchain News
Load More

© 2020, FinanceLane

Home | Contact | Terms and Conditions | Disclaimer | Privacy Policy

  • Home
  • News Feed
    • Equity Funding
    • Debt Funding
    • Crowdfunding
    • Real Estate Funding
  • Investing
    • Stocks
    • Bonds
    • Mutual Funds
    • Private Equity
    • Merging & Acquisition
    • Real Estate
  • Lending
    • Personal Loan
    • Business Loan
    • Credit Card
    • Microfinance
    • Peer-to-Peer Lending
  • Insurance
    • Life Insurance
    • Auto Insurance
    • Education Insurance
    • Health Insurance
  • Banking
    • Business Banking
    • Payments Bank
    • Investment Banking
    • Individual Banking
  • Wealth
    • Earning
    • Savings
    • Investments
    • Budgetting
    • Credit Management
    • Tax Planning
    • Retirement
  • Fintech
    • Alternative Financing
    • Payments
    • Asset Management
    • Digital Banks
    • Softwares
  • Venture
    • Startup Ecosystem
    • Merging & Acquisition
    • Equity Investing
    • Franchising
    • Business Offers
  • Fintech
    • Alternative Financing
    • Asset Management
    • Digital Banks
    • Softwares
    • Payments
  • Crypto
    • Crypto Investing
    • Crypto Trading
    • Crypto Coins
    • Bitcoin
    • Blockchain
    • DAPP
  • Subscribe
  • Contact
  • Login

© 2020 FinanceLane - Terms and Conditions | Disclaimer | Privacy Policy

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

← Why the wealthy are getting serious about climate change investing, regardless of politics ← Crypto Assets in South Africa Would Be Considered Financial Products Under Regulator Proposal
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.