Crypto pundits believe that central bank digital currencies based on public-private partnerships could see the light of day much sooner, as many solutions under development use the approach.
On May 26, Tommaso Mancini-Griffoli, a representative from the International Monetary Fund, stated that moving forward, the best way to harness the potential of central bank digital currencies would be by fostering synthetic partnerships between the private and public sectors.
Further expounding his views on the matter, the deputy division chief of the IMF’s monetary capital and markets department stated that the vision behind CBDCs being completely under the control of a central bank is now an outdated one and that the entry of private players could help spur innovation.
When asked about how such a partnership could even start to become conceptually feasible, he suggested that in cases of synthetic partnerships it should be the role of the private sector to concentrate on things such as innovation, interface design and client management, while the public sector should focus on issues related to regulation and confidence building.
This joint effort, in Mancini-Grifolli’s view, will not only allow CBDCs to flourish but also allow such unique financial offerings to operate smoothly within the confines of a regulated framework, thereby maximizing financial stability.
The pros and cons of synthetic CBDCs
To get a better understanding of the matter, Cointelegraph reached out to Luisa A.