IMF's Georgieva says countries need to understand digital currency options

International Monetary Fund Managing Director Kristalina Georgieva said on Tuesday that she is telling member countries to accept the rapid developments of digital currencies and understand their options in the sector.

"I'm telling countries, 'Accept reality, fiat money is moving digital,'" Georgieva said at a panel event on cryptocurrencies and blockchain technology during the IMF and World Bank annual meetings in Washington.

She said that digitalization in fiat money was "very good and very powerful," and differentiated this from unbacked cryptocurrencies, such as Bitcoin, which the IMF has long advised central banks to avoid as a reserve asset.