IMF Approach to Central Bank Digital Currency Capacity Development

 Central Bank Digital Currencies (CBDCs) are increasingly becoming a topic of interest for the global central banking community. As they may have a significant impact on both domestic and international economic and financial stability, over 40 countries have sought assistance from the International Monetary Fund (IMF) through CBDC capacity development (CD).

To this end, the IMF has been facilitating peer learning and developing analytical frameworks to provide tailored advice to member countries. CD missions have been deployed to help country authorities answer fundamental questions about CBDCs, and as more empirical evidence emerges, the IMF CD will evolve to provide increased value-added advice that is better tailored to country circumstances and anchored in empirical and analytical work. The IMF also aims to strengthen synergies with surveillance.

This paper outlines a multi-year strategy to address frequently asked questions related to CBDCs and details the process for developing a CBDC Handbook, which will document emerging lessons, analytical findings, and policy views. The Handbook will serve as a comprehensive guide for member countries seeking to develop CBDCs, covering a range of topics including governance, design, operational aspects, and risks.

This paper provides an overview of the IMF's approach to CBDC CD, summarizes emerging questions and challenges from member countries regarding CBDCs, and introduces the CBDC Handbook by outlining its scope and governance structure. The IMF is committed to providing tailored advice and support to member countries as they navigate the complex landscape of CBDCs, and this Handbook will serve as a valuable resource to facilitate their efforts.