IMF Releases Digital Currency Handbook for World’s Central Banks

• IMF Releases Digital Currency Handbook for World’s Central Banks
  by Naveen Athrappully, https://www.theepochtimes.com/
  Central bank digital currencies can push the world away from depending on the U.S. dollar, the organization said.
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  The International Monetary Fund (IMF) released a handbook for global central banks regarding the development and implementation of central bank digital currencies (CBDCs). The IMF’s “Central Bank Digital Currency Virtual Handbook” published last week pointed out that the increased use of CBDCs can “reduce dollarization” of the global economy—a situation where countries move away from relying on the U.S. dollar as a reserve currency. De-dollarization would push up borrowing costs in the United States, making loans expensive for businesses and individuals, thus affecting economic growth. Stock market values can also crash, reducing the savings and investments of Americans.
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  In addition to de-dollarization, a CBDC “could increase risks of flight to safety from retail bank deposits in periods of market stress.” During times of market volatility, customers withdraw their deposits and move it into safe assets to avoid losing money in scenarios like bank collapses.
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