Central bank digital currencies may replace cash, according to the IMF. Won’t anyone think of Fatman Scoop, who could soon be out of reasons for you to put your hands up?

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IMF says central bank digital currencies can replace cash

Central bank digital currencies have the potential eventually to replace cash, according to the managing director of the International Monetary Fund. Kristalina Georgieva said adoption could take some time, but argued CBDCs could offer resilience in more advanced economies and improve financial inclusion in countries where few hold bank accounts.

CBDCs are digital forms of fiat currencies. They are regulated by central banks and their value is stable, like banknotes. But CBDCs are powered by blockchain technology, which means central banks could make government payments directly to households.

Approximately 60% of countries are exploring CBDCs, according to the IMF. Critics have argued that CBDCs would create financial privacy issues, removing the anonymity of cash in favor of a monetary system that could be tracked by the state.

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