Financial Inclusion Through Digitalization, IMF Director Advocates

By: Isha Das

According to IMF Managing Director Kristalina Georgieva, digitalization could potentially offer a significant boost to financial inclusion. During a seminar on financial inclusion organized by the International Monetary Fund (IMF) in Marrakesh, Morocco, Georgieva highlighted digitalization as the primary avenue to expanding financial inclusivity.

She provided examples like digital cash transfers implemented in Togo during the COVID-19 pandemic which improved financial inclusivity. Simultaneously, she warned about potential financial instability risks inherent in digitalization and suggested comprehensive national strategies to safeguard against these risks.

The IMF is also proactively analyzing regulatory requirements in the crypto space, having proposed a crypto-risk assessment matrix (C-RAM) on Sept. 29. Their Synthesis paper, prepared in conjunction with the Bank for International Settlements (BIS) encourages comprehensive oversight of crypto currencies as opposed to a sweeping ban.

In related news, experts from Hedgehog Technologies have posited that extension of services beyond traditional scope is critical for crypto exchanges and other key players in the next crypto cycle.