IMF: Central bank cryptocurrencies could replace physical money

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Speaking at the Singapore Fintech Festival, Georgieva said that many countries are exploring central bank digital currencies and developing regulations to guide developments in digital money.

Pointing out that there is still a lot of room for innovation in this area, Georgieva noted that there is a lot of uncertainty about the use cases.

Georgieva stressed that the public sector should continue to prepare for the implementation of central bank digital currencies and related payment platforms in the future.

Stating that the process of introducing central bank digital currencies is not yet imminent, Georgieva noted that about 60 percent of countries are exploring them.

"Central bank digital currencies can replace physical money in island economies, which is costly to distribute," Georgieva said.

Central bank digital currencies can provide resilience in more developed economies and improve financial inclusion in places where the number of people with bank accounts is small, Georgieva said.

Pointing out that central bank digital currencies will offer a "safe and low-cost" alternative, Georgieva said their benefits will depend on how technologies develop.

Artificial intelligence could enhance some of the benefits of central bank digital currencies, Georgieva said, adding that it could improve financial inclusion by providing fast, accurate credit scoring based on a variety of data and provide personalized support to people with low financial literacy.