With interest in central bank digital currencies (CBDCs) at an “unprecedented” level, the International Monetary Fund (IMF) is experiencing heavy demand for guidance in regard to them. In response, the IMF planned to release a CBDC handbook, deputy managing director Bo Li said in a recent speech.

The IMF official saw some urgency in meeting the needs of central banks planning CBDCs. Therefore, the organization has engaged with almost 30 countries that requested assistance in the past two years. Over 40 countries had contacted it so far, Li said. He said:

“We believe CBDC capacity development is essential to avoid a digital divide.”

In addition, poor design of a CBDC could to a variety of risks. To address the informational need, the IMF will produce a CBDC handbook that will be “the basis for capacity development,” Li said.

The future handbook was discussed in greater detail in an IMF staff report. The handbook will “mostly be descriptive rather than prescriptive, offering information, experience, empirical findings, and frameworks to evaluate CBDC.”

(by Derek Andersen)