According to Odaily, the International Monetary Fund (IMF) is grappling with issues of resource allocation and overburdened staff as it expands into new policy areas such as governance, social spending, digital currencies, climate change, and gender. Despite the expansion into these areas being approved by the board, the report indicates that resources and expertise remain limited, potentially affecting the IMF's ability to provide high-quality policy advice. The Independent Evaluation Office (IEO) of the IMF is concerned that this could lead to a trilemma, i.e., a trade-off between expanding scope, resource constraints, and maintaining the ability to provide high-quality policy advice. The IEO is also worried about the limited discussion on the risks of the fund's involvement in new policy areas.
Although the report put forth four high-level recommendations, such as around decision-making and budget tracking, the real question is whether this will impact the IMF's work on digital currencies. The IMF's work in the area of digital currencies and Distributed Ledger Technology (DLT) is extensive, including assisting multiple countries in developing central bank digital currencies and participating in cross-border payment projects, facing management and resource allocation challenges. How the IMF adjusts its strategy and work focus in the future will be a point of observation.
