BAKU, Azerbaijan, April 30
By Tamilla Mammadova – Trend:
The National Bank of Georgia (NBG) is considering launching a publicly available Central Bank Digital Currency (CBDC) to leverage new technologies to enhance efficiencies of the domestic payment system and financial inclusion, Trend reports via the NBG.
"The CBDC is a direct liability of the central bank that can be used to settle payments, or as a store of value and will have legal tender status. In this journey, NBG is inviting technology firms, fintech companies, and interested financial institutions to join efforts to explore the frontiers of financial technology and solve technological, regulatory, and financial issues facing CBDC adoption through a public-private-partnership (PPP)," the report said.
NBG has the mandate to maintain price and financial stability. The key instrument through which these policies are maintained is central bank money - the Georgian lari.
The rise of digital technologies underscores the necessity to update central bank money - by creating a digital version of the lari - to better serve the digital economy and increase public policy efficiency.
CBDC holds the promise to unlock the tremendous value of innovative business models for the benefit of society. The introduction of CBDC could increase financial intermediation efficiency, help introduce new financial technologies, facilitate financial inclusion, and reach previously unbanked populations.
It could also increase monetary policy efficiency by improving monetary policy's monetary transmission mechanism and welfare effects for the society.
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