{"id":51118,"date":"2023-06-24T00:00:00","date_gmt":"2023-06-24T00:00:00","guid":{"rendered":"http:\/\/timessouthafrica.com\/?guid=58733c1109640dd5a63901dc1419accb"},"modified":"2023-06-24T00:00:00","modified_gmt":"2023-06-24T00:00:00","slug":"economist-lauds-imfs-decision-on-global-cbdc","status":"publish","type":"post","link":"https:\/\/timessouthafrica.com\/economist-lauds-imfs-decision-on-global-cbdc\/","title":{"rendered":"Economist lauds IMF’s decision on global CBDC"},"content":{"rendered":"
An economist, Prof. Uche Uwaleke, has commended the International Monetary Fund (IMF) for working on a global Central Bank Digital Currency (CBDC) platform to enable transactions between countries.<\/p>\n<\/p>\n
Uwaleke, a Professor of Finance and Capital market, Nasarawa State University, Keffi, made the commendation on Friday in an interview with the News Agency of Nigeria (NAN) in Lagos.<\/p>\n<\/p>\n
He said the decision to come up with a concept of a global CBDC was a welcomed development.<\/p>\n<\/p>\n
NAN reports that IMF Managing Director, Kristalina Georgieva, had on June 19, in Morocco, said the organisation was working on a platform for CBDC to enable transactions between countries.<\/p>\n<\/p>\n
The IMF wanted Central banks to agree on a common regulatory platform that would create a vacuum that would likely be filled by cryptocurrencies.<\/p>\n<\/p>\n
A CBDC is a digital currency controlled by the Central Bank, while cryptocurrencies are nearly always decentralised.<\/p>\n<\/p>\n
Already, 114 central banks are in their final stages preparing to launch CBDC, with about 10 already successfully completed, and Nigeria\u2019s enaira is one of those.<\/p>\n<\/p>\n
According to Uwaleke, a global CBDC will facilitate international transactions and interoperability faster than fragmented efforts by individual countries.<\/p>\n<\/p>\n
He said the concept would equally reduce the threat of private digital currencies such as bitcoin to Central Bank Digital Currencies.<\/p>\n<\/p>\n
\u201cThe major challenge that needs to be overcome to enhance interoperability is fragmented regulatory framework.<\/p>\n<\/p>\n
\u201cA global CBDC will not replace the need for individual countries\u2019 CBDC. Rather, it will complement it.<\/p>\n<\/p>\n
\u201cWhile the former will be used to facilitate payments in foreign currencies, the latter can be used chiefly for transactions within a domestic economy,\u201d he said.<\/p>\n<\/p>\n
Uwaleke, however, expressed dissatisfaction over the slow adoption of the enaira.<\/p>\n<\/p>\n
He said: \u201cwide adoption of the enaira requires massive sensitisation and enlightenment campaigns.<\/p>\n<\/p>\n
\u201cMany Nigerians still do not know about the enaira and how it is used.\u201d<\/p>\n<\/p>\n
The economist, therefore, called on the government to help by ensuring that a fraction of civil servants salaries were paid using enaira, saying that would improve its adoption.<\/p>\n<\/p>\n
Source: News Agency of Nigeria<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"
An economist, Prof. Uche Uwaleke, has commended the International Monetary Fund (IMF) for working on a global Central Bank Digital Currency (CBDC) platform to enable transactions between countries.Uwaleke, a Professor of Finance and Capital market, Na…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\n