IMF warns no country can stop cryptocurrency on its own – Nairametrics
The International Monetary Fund (IMF) has warned that no country can stop cryptocurrency on its own.
The IMF has said cryptocurrency regulation will require nothing less than a determined global effort and a global crypto deal, which most believe is still a long way off.
This was revealed by Gita Gopinath, the IMF’s senior economist, speaking at a conference for the New Delhi-based economic think tank, the National Council for Applied Economic Research.
What the IMF says
Gopinath, who will soon take the post of deputy managing director of the IMF, said that if governments ban crypto, they will have no control over offshore exchanges that are not subject to their country’s laws, which could cause them lead to being completely ignored.
She said, “There are challenges in banning it if you can end up really banning crypto, as many exchanges are offshore and they are not subject to the regulations of a particular country.
Gopinath also conceded that the bans could not be a “passive phenomenon “ – and would imply “supervision, control and regulation.
But she went further, adding that what was “really needed” was a “global effort”, saying: “No country can solve this problem on its own, given the ease of doing these cross-border transactions. We therefore need a global policy on this front. And I think it is urgently needed.
She claimed that crypto adoption is also on the rise in developing countries, where it is creating a new set of financial problems for economic policymakers.
The IMF official said: “It appears more attractive to adopt crypto assets and cryptocurrencies in emerging developing economies than in advanced economies. If you look at adoption around the world, we certainly see that there is rapid adoption happening in emerging and developing economies.“
She asserted that such adoption is problematic because emerging and developing economies generally have exchange rate controls and measures to control the flow of capital and cryptoassets can be a means of escaping this. type of regulation.
Expanding on his thoughts on the crypto ban, Gopinath said regulation is absolutely important to this industry and added that while people are using it as an investment class, the same kinds of regulations you have on traders. Securities and securities brokers should also apply to crypto-assets.