IMF Doesn't Recommend Commercial Banks Rely On CBDC

Illustration (Photo: Doc. Antara)

JAKARTA - The International Monetary Fund (IMF) does not recommend that commercial banks rely on rupiah currency in digital form or central bank digital currency (CBDC) even though there are benefits offered, especially for the development of payment services.

Division Chief in the Monetary and Capital Markets Department of the IMF Tommaso Mancini Griffoli explained, CBDC has limitations when compared to conventional currencies.

However, said Griffoli, CBDC provides convenience in payment services, considering that currently, many consumers use digital-based payments.

However, the consideration for using CBDC must be measured from the stability factor.

“We have to compare deposits in commercial banks and CBDCs, especially in terms of their stability as a means of storage, and in terms of their convenience as a means of payment. So far, it is not clear whether CBDCs are superior (than commercial bank deposits)," Griffoli said as quoted by ANTARA, Tuesday, July 12.

He added that if a CBDC, for example, does not offer an interest rate while commercial bank deposits provide better guarantees, then the second tool is safer.

If the situation is like this, then the banks will still maintain deposits.

He also emphasized that CBDC only needs to be seen as a complement, not the main tool.

"If you look at the various models, CBDC is not just a digital exchange instrument, but it has the potential to become a network, platform, and CBDC can be the basis for the private sector to develop payment services," he said.

Thus, said Griffoli, CBDC needs to be positioned as a complement, not a primary means of payment.

“For me, we probably won't just rely on CBDC. I don't think the same way, and I don't recommend it, because there are many solutions available to the various problems that exist," he concluded.