The International Monetary Fund (IMF) has highlighted the potential of digital currencies, including stablecoins and central bank digital currencies (CBDCs), to enhance financial inclusion and improve financial services in the Pacific Islands. A report released by the IMF on March 25 delves into the impact these digital currencies could have on the economies of these remote and dispersed nations. The 58-page document crafted by IMF’s senior economists identifies significant challenges for the Pacific Islands, emphasizing the importance of financial services for overcoming poverty and inequality. A particular concern for these nations is their heavy reliance on remittances and the detrimental
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