As the International Monetary Fund (IMF) works tirelessly to advance the technologies behind central bank digital currencies (CBDCs), it has been met with resistance from some members of the crypto community. In a recent policy roundtable, the IMF’s director of the monetary and capital markets department, Tobias Adrian, presented a new platform concept for cross-border payments, dubbed the “XC platform.” According to Adrian, the platform would use one ledger to record CBDC transactions, allowing digital representations of central bank reserves in any currency to be exchanged.
However, many in the crypto community are skeptical of the IMF’s eagerness to foray into the realm of CBDCs, with some seeing it as a power grab. A Reddit user accused the IMF of using issues like financial inclusion, which they have “ignored for decades,” as a “Trojan horse” to push CBDCs forward. The user opined that the IMF is simply trying to amass more power and control.
On Twitter, another individual criticized the IMF’s latest move, claiming the new platform sounds too similar to a “sh*tcoin.” This user argued that neither governments nor the IMF should be able to decide what the best form of money is. Echoing these sentiments, another community member described CBDCs as a “dystopian nightmare,” allowing government agencies complete control over individuals and enabling the IMF to turn off access to their own money whenever they desire.
Despite the criticism, it’s important to recognize that the XC platform could offer some advantages. By utilizing a single ledger, it may streamline and simplify cross-border payments for central banks. Additionally, CBDCs could promote financial inclusion by extending access to digital financial services to unbanked and underbanked populations.
Nevertheless, it’s evident that dissent remains among the crypto community regarding the development of CBDCs. With some expressing relief that they haven’t seen individuals advocating for the centralized digital currency, it will be crucial for the IMF to address these concerns and maintain a dialogue with the broader crypto community as it pursues this new technology.
Source: Cointelegraph
