Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Coin In Bitcoin Name Doesn't Make It Money: IMF Chief

Coin In Bitcoin Name Doesn't Make It Money: IMF Chief

IMF chief said crypto products may be offering faster services at a much lower cost and better inclusivity, but for that also there was a need to separate apples from bananas and regulation would be key there.
IMF chief Kristalina Georgieva on Monday cautioned against confusing crypto products with currencies and said anything not backed by a sovereign guarantee can be an asset class but not a currency, as she asserted that Bitcoin cannot be 'money' just because it has got 'coin' in its name.

Speaking at a session on central bank digital currencies in Davos at the World Economic Forum Annual Meeting, she said crypto products may be offering faster services at a much lower cost and better inclusivity, but for that also there was a need to separate apples from bananas and regulation would be key there.

At the same session, Central Bank of France Governor Francois Villeroy de Galhau said the banknotes also proved to be a great technological advancement when they were introduced.

"I always speak of crypto as assets and not as currencies. For any currency, someone has to take the responsibility, but there is no one in case of so-called cryptocurrencies. Also, currencies need to have a lot of trust and they need to be universally acceptable," he said.

"We cannot have currency on one side and the trust on the other side. They need to be together," he said.

When asked about the loss of trust of people in central banks, he responded, "My impression is that the people are losing trust in crypto also and that loss of trust is more than that in central banks." On CBDCs, he said they would simply be modes of payments and not investment assets.

The governor further said there was a reason why the last word in CBDC was 'currency' and not 'coin'.

He also said the world would still rely on banknotes for the next century despite the advent of CBDCs.

The IMF chief also appeared optimistic about the future of banknotes, alongside the digital money, and cited an example that when the Ukraine war started, there was a huge surge in demand for banknotes due to the fear of cyberattacks.

Experts believe Central Bank Digital Currencies (CBDCs) have the potential to reshape financial systems, changing the landscape of payments and banking. More countries are experimenting with CBDCs and some are beginning to bring them to market, potentially offering lessons for the rest of the world.

The panellists discussed what are the macroeconomic and geopolitical implications surrounding the roll-out of CBDCs and how can the public and private sectors work together to ensure that CBDC development ultimately benefits consumers and minimizes risks to financial stability.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
German Chancellor Friedrich Merz: “The Current Welfare State Can No Longer Be Financed”
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
Wizz Air passengers screamed as storm-battered flight diverts to Bologna
European postal services halt U.S. deliveries after Trump imposes new tariffs
Urban explorer finds abandoned luxury restaurant left to decay
Fidesz leader labels Péter Magyar a ‘bluffer’ amid escalating political spat
French rope park operator arrested for denying entry to Israeli children
Újpest thrashes Zalaegerszeg 4-1 to secure first win in five matches
Profit-margin cap costs retailers 13 billion forints a month, warns trade group
Curiosity rover finds coral-like rock on Mars hinting at watery past
U.S. green policy rollback drives investors to Europe’s sustainable finance market
Special funerals rise in Hungary: boat, aerial and forest burials gain popularity
Hungary’s Kiskunság region turning into semi-desert after extreme drought
Kopasz Bálint wins world kayak 1000 m title in Milan, making him triple world champion
Budapest’s Keleti railway station to close for four weeks for track overhaul
Balaton could be unfit for swimming by 2035 and dry by 2050, scientists warn
Leaked guidelines show Meta’s AI allowed flirty and racist interactions with children
Filming of ‘Emily in Paris’ halted after assistant director dies on set
Filipino guest workers sue after Hungary moves to deport them for pregnancy
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
A monster hit and a billion-dollar toy empire
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
Canada: Nurse Suspended and Fined 93 Thousand Dollars After Stating the World’s Most Well-Known Fact Since the Creation of Adam and Eve, That There Are Only Two Genders
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
U.S. Treasury Secretary Whitney Bessent Backs Stablecoins to Boost Treasury Demand
Spain to Declare Disaster Zones After Massive Wildfires
Three-Minute Battery Swap Touted as Future of EVs
Beijing Military Parade to Showcase Weapons Advances
×