The world is rapidly moving towards a centralized cashless society, and this article aims to provide an update on the latest developments in that direction. The International Monetary Fund (IMF) is pushing for a global platform that would allow various central bank digital currencies (CBDCs) to interoperate on a global scale. IMF managing director Kristalina Georgieva highlighted the importance of having systems that connect countries and promote interoperability for more efficient and fairer transactions. The IMF wants central banks to reach a consensus on a common global regulatory framework for digital currencies to give global adoption a major boost.
To ensure a smooth transition to a cashless society, the IMF is increasing its staffing dedicated to digital currency. Additionally, the United Nations (UN) is planning to introduce a global digital ID system linked to individuals’ bank accounts. UN Secretary-General Antonio Guterres aims to ensure that every individual in the world can be directly tied to their bank accounts. This initiative aligns with the system developed by the World Economic Forum.
Global leaders and organizations are actively integrating digital IDs and digital currencies into their agendas. Bill Gates has also promoted global digital IDs during the Covid pandemic. The UN and the IMF are working together on these initiatives, with the UN pushing for the digital ID system attached to bank accounts and the IMF advocating for the global integration of digital currencies.
The Bank for International Settlements (BIS), the world’s largest central bank, is also endorsing the new CBDC system. The BIS’s head emphasizes the significance of this system, further cementing the global push towards a digital currency system connected to individuals’ identities and bank accounts.
In the United States, progress towards a cashless society is not far behind. The Biden Administration instructed government agencies to outline the impacts of a dollar-based CBDC and how they would integrate with it. In September, the Biden Administration released a paper detailing the technical framework for a central bank digital currency in America. The Federal Reserve began beta-testing the system with 100 selected banks in October/November. While the planned launch of the centralized “distributed” ledger was delayed, a recent announcement stated that the FedNow system is live, allowing banks and credit unions of all sizes to instantly transfer money for their customers.
The FedNow system is expected to become the backbone of the Federal Reserve’s own CBDC when the digital dollar is ready for rollout. These developments further solidify the transition to a global cashless society, where digital currencies will be integrated with individuals’ identities and bank accounts.
In conclusion, the world is rapidly moving towards a cashless society, with major players like the IMF, UN, and Federal Reserve actively advocating for the integration of digital currencies. The push for interoperability and the implementation of global digital ID systems are key components of this transition. Despite some delays, progress is being made, and the groundwork is being laid for a future where physical cash is no longer the primary means of transaction.