• Home
  • Bitcoin News
  • Blockchain News
  • CBDC News
  • NFT News
  • New to Crypto?
  • About
  • Contact
Facebook Twitter Instagram
Todayq News
  • News
  • Bitcoin
  • Metaverse
  • NFT
  • Blockchain
  • New to Crypto
  • Contact
Twitter Facebook Instagram LinkedIn
Todayq News
News

IMF official says it is important to distinguish between a CBDC and a cryptocurrency

By Om Labde11 January 2023, 05:50 PM
IMF official says it is important to distinguish between a CBDC and a cryptocurrency

K.V. Subramaniam, executive director at the International Monetary Fund (IMF) and former chief economic adviser to the Government of India, discussed the distinction between CBDC and crypto. Additionally, he said that the banks would keep up with the development of digitization.

It’s critical to distinguish between cryptocurrencies and the CBDC (Central Bank Digital Currency), according to the former chief economic counsel to the Indian government. CBDC is a digital currency issued by the central bank, as opposed to the real currency we carry in our pockets and use when we need to give someone money. It will eventually become a component of the money in use, merely the central bank keeping up with digitization.

In response to the question of whether the central bank will need to adjust its money management by balancing the quantity of currency to be printed and issued in the digital format, Subramanian replied that it would depend on how the central bank views the demand for the CBDC. He asserted that the CBDC and fiat money are substitutes to each other.”

“Printing of currency is based on the demand for currency. Depending on how they see the demand for digital money (the CBDC), they will print. In some way, they are substitutes to each other.”

Banks are often seen as only a means of distributing money, but according to Subramaniam, they are its source.

He explained that the “financial intermediation” theory says you can only lend what you possess. Banks, however, have much greater lending capacity than they do. First, they evaluate the borrower’s capacity for loan repayment. The bank then credits the deposit in the lender’s account after approving the loan, turning it into an asset. Therefore, deposits do not create loans; loans create deposits.

In India, interest in the subject has increased after the RBI started its pilot projects for digital currency. The Reserve Bank of India (RBI) announced its intention to introduce the Central Bank digital currency in October (CBDC). In addition, the Central Bank launched the wholesale (CBDC-W) segment pilot program on November 1 and recently discussed plans for a retail (CBDC-R) segment pilot with the media.

According to reports, although the wholesale CBDC is only intended for certain financial institutions, the retail CBDC can be used by everyone, including the private sector, enterprises, and non-financial customers. Additionally, the bank has not made any public statements regarding the conclusion of the successful wholesale business pilot.

With many nations and Central Banks enthusiastic about its implementation, including Zimbabwe, Thailand, Australia, and Pakistan etc., CBDCs have become a well-known concept.

CBDC Crypto IMF
Share. Facebook Twitter LinkedIn Telegram WhatsApp Reddit

Comments are closed.

Must Read

The entertainment industry is welcoming Web3 with open arms

Survey: Crypto is currently the second-most owned asset by women after cash

Data: 59% of BTC holders are enjoying profits, and only 38% are running in loss

Report: Boomers are the most cautious Crypto investors

Instagram
The price of Bitcoin, after going through what the industry calls one of the worst bear markets, has been surging. Data reveals that the increasing prices have helped both short-term and long-term investors to profit.
A recent report released by eToro called the “Retail Investor Beat” indicated that although traditional asset classes struggle to encourage greater adoption among women, cryptocurrencies appear to be more successful. The eToro team surveyed almost 10,000 global retail investors across 13 nations.
The crypto industry is continuously expanding, and the events that occurred in the past year gave investors major shocks. However, they also highlighted the need for having a clearer and deeper understanding of the crypto space to navigate safely and securely.
“Full-time” developers, defined as those who contribute to 76% of Github commits, climbed by 15.2% to over 7000. In comparison, “one-time” builders decreased by 6.2% to over 3,500 over the same period between December 2021 and December 2022, according to a Jan. 16 report from Electric Capital.
Crypto by TradingView
Twitter Facebook Instagram LinkedIn
  • About
  • Careers
  • Advertise
  • Privacy
All rights reserved by Todayq Technologies PVT. LTD.

Type above and press Enter to search. Press Esc to cancel.