1. Prioritizing Engaging Stakeholders
2. Key Components of the REDI Framework
3. Proposed Reforms and Incentives

On September 21, the International Monetary Fund (IMF) released a report titled “Central Bank Digital Currency Adoption: Inclusive Strategies for Intermediaries and Users,” proposing a REDI framework encompassing regulation, education, design, and deployment to encourage the use of CBDCs.

Prioritizing Engaging Stakeholders

The IMF stated that successful implementation of CBDCs requires proactive strategic policy and design decisions that benefit both end-users and intermediaries. Consequently, central banks should prioritize engaging stakeholders.

Key Components of the REDI Framework

The REDI framework was prepared by IMF staff members to assist national central banks in increasing CBDC usage. The REDI framework comprises four main components. The first part, 'regulation,' considers several legal and regulatory options for encouraging CBDC use. The education section suggests that central banks play a pivotal role in driving initiatives to raise CBDC awareness. Thirdly, the framework stresses the importance of creating a vast network of intermediaries and strategies targeting specific user groups.

Proposed Reforms and Incentives

The final section proposes financial and non-financial incentives to promote widespread CBDC use, including the subsidization of merchant startup fees, transaction fees, and taxes. The report also urged further discussion on existing issues.

The International Monetary Fund has provided a detailed guide to boost the use of central bank digital currencies, incorporating the REDI framework that focuses on regulation, education, design, and deployment. Engaging intermediaries and end-users is a key aspect of successful CBDC implementation.