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IMF releases REDI strategy to promote global adoption of CBDCs, calling for joint cooperation among central banks worldwide

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IMF releases REDI strategy to promote global adoption of CBDCs, calling for joint cooperation among central banks worldwide

The International Monetary Fund (IMF) released a report on September 21 titled "Promoting Inclusive Strategies for Central Bank Digital Currency (CBDC) Adoption." The report focuses on promoting the use of CBDCs by central banks worldwide through the REDI strategy, which consists of "Regulation, Education, Design, and Incentives" to stimulate and increase the adoption of CBDCs.

REDI Four Dimensions

REDI focuses on four dimensions: regulation, education, design, and incentives.

  1. Regulation: It is suggested that countries establish regulations favorable to Central Bank Digital Currencies (CBDCs) to strengthen their development.
  2. Education: Central banks are advised to actively educate the public on CBDC-related information and benefits, serving as a communication bridge.
  3. Design & Deployment: Customized services should be designed for different users, and an intermediary network should be established to facilitate the smooth implementation of CBDCs.
  4. Incentives: Real money or other incentive measures, such as fee waivers and subsidies for merchants, should be provided to stimulate and increase the usage of CBDCs.
Source: IMF

Urging Countries to Consider Multiple Interests, Sustainable Development is Key

The IMF states that not only should the users be taken care of, but the needs and interests of intermediary institutions should also be considered. It emphasizes that central banks of various countries must strengthen interactions with stakeholders to ensure the practical implementation of policies. Additionally, it adds, "Due to certain policy issues, how to simultaneously balance financial stability in the process of completeness, sustainable development, and promotion of CBDC usage requires further discussion and research." The actions taken by the IMF clearly indicate that the global financial system is accelerating the digitization of currencies while ensuring long-term implementation.

The UK Financial Conduct Authority and banks have successfully tested CBDCs, moving towards tokenizing securities.