The International Monetary Fund (IMF) is reportedly in the process of creating a global platform aimed at enhancing the interoperability of Central Bank Digital Currencies (CBDCs), as per a Reuters report on Monday. The IMF believes that a widespread consensus on such a platform could be crucial to prevent private market cryptocurrencies from filling its functional role.

IMF Managing Director, Kristalina Georgieva, stated on Monday that the IMF’s platform is intended to facilitate CBDC transactions between different countries. “CBDCs should not be fragmented national propositions,” Georgieva told African central banks at a conference in Rabat, Morocco. “For transactions to be more efficient and fairer, we need systems that connect countries: we need interoperability.”

She added, “For this reason, at the IMF, we are working on the concept of a global CBDC platform.”

A CBDC is a digital currency issued by a central bank, akin to traditional fiat currencies. They can be backed by fiat currency or other assets like gold, or considered equivalent to those assets by the central bank. Georgieva emphasized that cryptocurrencies not designed in this way are “speculative investments.”

CBDCs are praised for their potential to promote financial inclusion and reduce payment costs. Current average remittance fees are 6.3%, amounting to $44 billion per year. “If countries develop CBDCs only for domestic deployment, we are underutilizing their capacity,” she added.

Georgieva noted that 114 countries are already exploring CBDCs in some form, with 10 “already crossing the finish line.” However, many are still in the early stages, with countries like the United States and Canada continuing to question the value of developing one.

Despite the potential benefits of decentralized cryptocurrencies like Bitcoin for cheaper remittances, the IMF has consistently opposed El Salvador’s adoption of Bitcoin, fearing that the asset’s currency status could destabilize the economy. El Salvador’s President Nayib Bukele continues to disregard their advice.

Private stablecoins like Tether (USDT) and Circle’s USDC have also been criticized for their potential to depeg and the risks associated with their reserves. In a five-point crypto regulation scheme recommended by the IMF earlier this year, it suggested that stablecoin issuers should be regulated like banks.