International Monetary Fund (IMF) Managing Director Kristalina Georgieva said crypto needs “more regulation.” She added that if regulations fail or are implemented too slowly, “we must not take those assets off the table to ban.”
IMF chief calls for more crypto regulations
IMF Managing Director Kristalina Georgieva spoke about crypto regulations on the sidelines of the G20 Finance Ministers and Central Bank Governors Meeting, under the Indian Presidency, in Bengaluru on Saturday. Commenting on crypto oversight, she told reporters.
There must be more regulation.
Her statement follows a roundtable she co-chaired with Indian Finance Minister Nirmala Sitharaman, where the IMF chief and the Indian finance minister agreed that besides debt restructuring, regulating cryptocurrencies is a priority area for India.
Georgieva explained that the IMF, the Financial Stability Board (FSB), and the Bank for International Settlements (BIS) are working on establishing a foundation to regulate cryptocurrencies that are not issued by governments or central banks.” We need to distinguish between state-backed central bank digital currencies [CBDCs] and stablecoins, and privately issued crypto assets,” she stressed.
“There must be a very strong push for regulation,” the IMF chief stressed, noting.
We should not take up banning those assets because if regulation fails, if it is too late to do it, it might create financial stability risks.
The IMF Executive Board provided guidance this week to help countries develop effective crypto policies. While most Executive Directors agree that “a strict ban is not the first option and targeted restrictions may apply,” a few believe that “a complete ban should not be ruled out.”
Additionally, the Board advised.” Crypto assets should not be granted official or legal tender status in order to protect monetary sovereignty and stability.” Georgieva likewise stated on Saturday.
Crypto assets are nothing, they cannot be accepted as legal tender.
The Fund has opposed accepting bitcoin as legal tender since El Salvador returned crypto to national currency in September 2021. However, the IMF said earlier this month that so far, the risks of El Salvador adoptingBTCas legal tender have not materialized.
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