Instagram Is New Frontier for Central Banks. Is TikTok Next?

tech.hindustantimes.com:

The world’s central banks are mixing it with wellness influencers, makeup experts and amateur chefs on Instagram as they increasingly turn to the social media platform to get their messages across.

While Facebook and Twitter remain monetary authorities’ social media of choice, they have markedly increased their use of Instagram over the past year. Seventy-one banks were on the platform as of December 2021, according to the Central Bank Directory, a 396-page tome on monetary policy makers and their institutions. 

Bank Indonesia is the most-followed central bank on Instagram, with just under 700,000 followers as of April 28. It’s followed by the authorities in Venezuela and Brazil. The Federal Reserve Bank of Chicago is the most-followed U.S. monetary authority with 7,398 followers. 

Central banks’ communications with the public will come under scrutiny this year as they seek to shepherd the world economy through a historic surge in inflation. Policy makers are embracing social media platforms to cut through to younger audiences, but that’s not without risk.

“Young people are quite impatient, so central banks have to send a message using very short sentences,” said Sayuri Shirai, economics professor at Keio University and a former board member of the Bank of Japan. “But they have to do so very carefully, because it may lead to a complete misunderstanding.”

How the most-followed banks use Instagram varies widely. Indonesia posts multiple times a day, including tips on how to avoid being scammed online and engaging users on their favorite type of coffee. Brazil’s central bank Instagram features a series of videos called “Calm Down! The Central Bank Explains,” with information on things like how to pay fines and how to avoid