International Monetary Fund (IMF) Managing Director Kristalina Georgieva says cryptocurrencies need “more regulation.” She added: “We should not take the ban on those assets off the table” if the regulation fails or its implementation is too slow.
IMF chief calls for more crypto regulation
IMF Managing Director Kristalina Georgieva spoke about crypto regulation Saturday on the sidelines of the G20 meetings for finance ministers and central bank governors under the Indian presidency in Bangalore. Commenting on the supervision of cryptocurrencies, she told reporters:
There has to be more regulation.
His statement followed a panel discussion that he co-chaired with India’s Finance Minister Nirmala Sitharaman. The IMF chief and India’s finance minister have agreed that apart from debt restructuring, cryptocurrency regulation is a priority area for India.
Georgieva explained that the IMF, the Financial Stability Board (FSB) and the Bank for International Settlements (BIS) are committed to establishing a foundation for the regulation of cryptocurrencies that are not issued by governments or central banks. “We have to differentiate between central bank digital currencies (CBDCs) that are state-backed and stablecoins, and crypto assets that are privately issued,” she emphasized.
“There has to be a very strong push for regulation,” the IMF chief emphasized, noting:
If the regulation fails, if they are slow to do so, then we should not lift the ban on those assets, because they can create a risk to financial stability.
The IMF executive board provided guidance this week to help countries develop effective crypto policies. While most of the executive board directors agreed that “hard bans are not the first best option, but that specific restrictions might apply”, some thought that “hard bans should not be ruled out”.
Furthermore, the board advised: “Crypto assets should not be granted official currency or legal tender status to safeguard sovereignty and monetary stability.” Georgieva similarly said on Saturday:
Crypto assets are nothing, they cannot be accepted as legal tender.
The Fund has been against El Salvador accepting bitcoin as legal tender since the country converted the cryptocurrency into a national currency in September 2021. However, the IMF said earlier this month that, so far, the risks of El Salvador adopting BTC as legal tender have not materialized.
What do you think about the statements of the managing director of the IMF, Kristalina Georgieva, on cryptocurrencies? Let us know in the comments section.
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