• The IMF managing director calls for more regulation on private cryptocurrencies.

  • Kristalina Georgieva added that the IMF is not seeking an outright ban on digital assets.

  • Cryptocurrencies are being discussed at the ongoing G20 Finance Ministers meeting in India.

IMF Calls for More Crypto Regulation

IMF Managing Director Kristalina Georgieva has revealed that the International Monetary Fund is looking to regulate private cryptocurrencies. She made the statement as a bystander at her G20 Finance Ministers’ Meeting in Bangalore, India.

and Interview with BloombergGeorgieva said the IMF does not want to outright ban cryptocurrencies and other digital assets.But they want crypto differentiation and regulation

She explained how UN financial institutions currently view digital assets and what they are trying to achieve in terms of regulation.

she said:

“We are all for regulating the world of digital money, and this is a top priority.”

She responded to a question about a recent statement about a possible outright ban on cryptocurrencies. She said there is. She added it.

“Our first objective is to distinguish between state-backed central bank digital currencies and publicly issued cryptoassets and stablecoins.”

Georgieva pointed out that a fully backed stablecoin would create a pretty good space for the crypto economy. However, unbacked crypto assets are speculative, risky and not money, she added the IMF director.

Crypto assets cannot be fiat currency

In June 2021, El Salvador will become the first in the world to Make bitcoin legal tender.

However, Georgieva said cryptocurrencies cannot become legal tender because they are unbacked. She further noted that the option to ban crypto assets should not be dismissed outright if they start to pose significant risks to global financial stability.

Georgieva said the best option would be to ensure better regulation, predictability and consumer protection in the crypto space.

When asked what could lead to a complete ban on cryptocurrencies, Georgieva responded if industry players failed to fully protect consumers.

Her comments follow Bitcoin’s impressive performance since the beginning of the year. When pressing Bitcoin price At $23,406, it’s up almost 50% year-to-date.

By Jules

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