IMF: We Need a Lot More Work Done on Crypto Regulation
The International Monetary Fund (IMF) says a lot more work needs to be done on crypto regulation. “We’ve certainly seen an increase in the use of cryptocurrencies before this war, and we’ve seen it happen more in emerging markets than in others,” said the deputy managing director of the IMF. IMF Chief Kristalina Georgieva Pushes for Harmonized Crypto Framework
The top two leaders at the International Monetary Fund (IMF) discussed crypto regulation on the Foreign Policy Live podcast, published last week. IMF Managing Director Kristalina Georgieva and Deputy Managing Director Gita Gopinath were asked how governments should respond to the growing number of challenges facing the global economy, including cryptocurrency.
Georgieva explained that the IMF separates digital assets into three types: “crypto assets like bitcoin,” stablecoins, and central bank digital currencies (CBDCs). Regarding crypto assets, she said: Time has passed to have regulatory frameworks that are as much as possible harmonized around the world.
“And I do hope that what we now see that there may be more attention to this topic translate into appropriate policy action,” Georgieva added.
As for stablecoins that are “backed by assets,” the IMF chief said, “if they’re properly regulated, they can play a very positive role.”
Georgieva further noted that a key role for the IMF is “to build tunnels that connect these different CBDCs to make that fragmentation less damaging for the world economy or even minimize it.” IMF’s Deputy Managing Director Sees More Work Needed on Crypto Regulation
Gopinath, an Indian-American economist, has served as the IMF’s first deputy managing director since Jan. 21 this year. She was the IMF’s chief economist between 2019 and 2022.
Commenting on crypto adoption, she said: We’ve certainly seen an increase in the use of cryptocurrencies before this war, and we’ve seen it happen more in emerging markets than in others.
Gopinath added: “I think parts of the world where there’s less financial inclusion, where people have less access to more regular forms of credit, cryptocurrency and other related forms of digital currencies can start playing a very important role.”
Regarding how much more crypto is being used due to the Russia-Ukraine war, the IMF deputy managing director admitted: “We don’t really have a clear picture at this time of how much of this particular war has triggered an increase in the use of cryptocurrencies, it’s not an easy picture to put together.” However, she noted: “But we are tracking this very closely, and I think in terms of the implications for the global economic order, I think that it’s fair to say that the recent events will accelerate consideration of central bank digital currencies more widely around the world.”
Gopinath continued, “We need to be particularly careful of the regulation that’s needed to ensure that the new forms of digital money don’t lead to evasion of capital risk flow restrictions, especially for emerging and developing economy,” concluding: I think we need to have a lot more work done on the regulatory front on crypto and digital money. Tags in this story Gita Gopinath, Gita Gopinath crypto, Gita Gopinath cryptocurrency, IMF, imf bitcoin, imf crypto, imf crypto regulation, imf cryptocurrency, Kristalina Georgieva, Kristalina Georgieva crypto, Kristalina Georgieva cryptocurrency
What do you think about the comments by the IMF’s top leaders? Let us know in the comments section below. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Billionaire Mike Novogratz Says "People Have Realized Crypto Is Really Popular" — Expects Softer Stance From Lawmakers REGULATION | 7 hours ago Central Bank of Sudan Warns of Risks Associated With Cryptocurrency REGULATION | 1 day ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleLeading NFT Marketplace Opensea to Add Solana Support in April Next articleIs the World Ready for Free Crypto Trading? Experienced Team Launches Mayex Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItReport: Digital AUM Surged to $48.7 Billion in March, Average Weekly Flows Turn Negative
The total aggregate digital assets under management (AUM) surged to $48.7 billion in March, up from the $43.9 billion that was recorded in January, the latest data from Crypto Compare has shown. In contrast, the average daily trading volumes fell ... read more.Ghana CBDC Development: New Central Bank Document Outlines Key Motivations for Issuing the Digital Currency Anonymous Claims It Has Released 28GB of Bank of Russia Documents US Senators Working on Broad-Based Crypto Regulation European Union’s MiCA Proposal Progresses to Trilogue Stage Without Bitcoin Ban Provision