IMF Chief Urges Rules for Safe Crypto Use
The leader of the International Monetary Fund (IMF) emphasized the necessity of regulating cryptocurrencies due to their potential threats to financial stability.
In her keynote address at a digital currency conference in Seoul, IMF Managing Director Kristalina Georgieva highlighted concerns about the destabilizing impact of widespread adoption of crypto assets.
She expressed worries that the extensive use of cryptocurrencies could undermine macro-financial stability, affecting the transmission of monetary policy, management of capital flows, and the sustainability of fiscal measures due to their volatile nature, particularly impacting tax collection.
Georgieva stressed the objective of establishing regulations aimed at fostering a more efficient, interoperable, and inclusive financial system while mitigating the risks associated with cryptocurrencies.
Emphasizing the need for infrastructure leveraging crypto technologies, she clarified that the intention behind these regulations is not to revert to a pre-crypto era or stifle innovation but rather to create a framework that encourages and steers innovation.
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She advocated that well-crafted regulations have the potential to stimulate and steer innovation in a positive direction. Georgieva also highlighted the choice policymakers face regarding the evolution of digital currencies, suggesting that they can either actively contribute to improving the process or risk being excluded from it, given its inevitable progression.
Georgieva underscored the significance of mutual learning among nations, particularly from emerging markets like India, with its robust digital public infrastructure. Additionally, she acknowledged the value of insights gained from the historical experiences of advanced economies in shaping the future of digital money.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
