WASHINGTON (Reuters] – Europe’s medium-term fiscal growth and consolidation will help it avoid another sovereign crisis, despite rising interest rates from the COVID-19 pandemic.

Kristalina Georgieva (Managing Director), spoke remotely at an event held by Bocconi University, Italy. She stated that digital currencies backed central banks are the best form of digital currency and it was difficult to consider other crypto assets money.

Georgieva said that Europe was more fit to avoid another debt crisis such as the one faced by Greece in the aftermath of the global financial crisis of 2007–08.

She said that countries will need to carefully plan how they can shift to fiscal consolidation in the medium term to eliminate increased debt due to pandemics.

Georgieva explained that 110 members of IMF have begun to look into digital currencies for central banks. The key issue was how to make digital currencies interoperable.

Georgieva explained that “de-facto assets”, such as Bitcoin, aren’t backed by assets that can hold their value steady and rise or fall quickly.

The top concern for policymakers when considering the use of digital currency is trustworthiness. Another consideration is whether or not the digital currency contributes to national economic stability.

“It is quite impressive to see how the international community and central banks are actively involved in making sure money, in the fast-moving world of digitalization is not a threat but a source for confidence.