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IMF Managing Director Kristalina Georgievacalled for faster adoption of central bank digital currencies (CBDCs) to improve sluggish and costly cross-border paymentsat the Singapore FinTech Festival on Wednesday.
Georgievas Keynote Address Highlights:During her address, Georgieva emphasized the potential of CBDCs to not only replace cash, especially in island economies, but also to advance financial inclusion in regions with low bank account ownership.
She pointed out, "Adoption of CBDCs is nowhere close. But about 60% of countries are exploring them in some form today, adding that they must be built to facilitate cross-border payments, which are at present expensive, slow, and available to few, South China Morning Post reported.
Singapore FinTech Festival Overview:Themajor technology gatheringhad62,000 participants including industry leaders such asAmazon.com, Inc.AMZN , Binance BNB/USD and HSBC Holdings plcHSBC , discussing various fintech advancements.
Philippines President on Financial Inclusion:Echoing Georgieva's sentiments, Phillippines President Ferdinand Marcos Jr.recognized the importance of digital banking and inclusive finance, stating, "[We] recognize the growing presence of digital banking, and the importance of inclusive finance for our financial landscape so that no one will be left behind in our pursuit of progress and prosperity.Loading… Loading… Loading…
IMFs New Handbook Launch:At the festival, the IMF introduced a new handbook to assist policymakers in accelerating the use and launch of CBDCs.
Benefits of CBDCs:Georgieva highlighted the efficiency CBDCs could bring to cross-border payments, potentially lowering costs for small businesses.
While we see encouraging declines in the cost of remittances, they remain above Sustainable Development Goal targets, she noted,
Also Read:Central Banks Are Exploring CBDCs, But Don't Expect A Digital Dollar Anytime Soon
Call For Collaborative Development:Georgieva encouraged the development of more cross-border platforms or next-generation virtual town squares for exchanging CBDCs and other digital assets among central and commercial banks, fintech companiesand the public sector.
Singapores Role In CBDC Adoption:Georgieva commended Singapores Monetary Authority (MAS) for its active role in supporting CBDC adoption and faster payment systems.
MASs Project Guardian announced five new industry pilots for digital money and asset exchange.
Ant Groups Collaboration And Expansion:Ant Group, a key player in fintech, partnered with the National Bank of Cambodia to enhance cross-border mobile payments and announced its global expansion strategy from Singapore.
MASs Project MindForge:MAS concluded phase one of Project MindForge, focusing on AI use in finance, and plans to publish its findings in January.
Singapore President On AI's Future Impact:In a dialogue,Singapore President Tharman Shanmugaratnamdiscussed AI's evolving role, predicting significant changes in the workforce over the next decade.
This technological revolution is going to have a more profound effect on the workforce than any previous technological revolution, he said.
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