share this article
in speech delivered At today’s high-level policy roundtable, the International Monetary Fund (IMF) and Al-Maghrib Bank announced a strategy to the World Central Bank Digital Currency (CBDC) to strengthen the global payment infrastructure between users of digital assets. demanded a transition.
Tobias Adrian, financial counselor and director of the Monetary and Capital Markets Department at the IMF, emphasized that technology offers an opportunity for money to evolve. He further emphasized that technologies such as encryption, tokenization and programmability are being used globally to improve monetary systems and should be further developed.
Adrian shared the blueprint for a new class of cross-border domestic and domestic payment and contract platforms called XC Platforms.
“Our blueprint for a new class of platforms will ensure greater interoperability, efficiency and security, not only in domestic financial markets, but also in cross-border payments.”
The proposed CBDC platform consists of three layers: payment, programming and information management. They ensure security by settling with central bank reserves, bring innovation and security to contracts, and manage the flow of information to overcome economic friction. These platforms provide interoperability between fiat currencies and “legacy systems” and are based on transparent, rule-based governance.
The platform is built to settle financial transactions in various currencies, with a focus on reducing delays and high fees associated with international payments, programming financial contracts and effectively managing information. .
Adrian suggested that the main advantage of these platforms is increased security as transactions are settled using a fairly safe currency called central bank reserves. The platform enables a multi-currency system, allowing participants to use the currency of their choice while the central bank maintains control over the distribution of reserves.
“The cost, slowness and opacity of cross-border payments stem from limited infrastructure. need to do it.”