IMF Calls For “More” Crypto Regulation, Says Ban Should Be An Option CryptoBlog

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International Monetary Fund (IMF) Managing Director Kristalina Georgieva says crypto needs “more regulation.” She added: “We should not remove the table prohibiting these assets,” if regulation fails or is too slow to implement.

IMF Chief Calls For More Crypto Regulation

IMF Managing Director Kristalina Georgieva spoke on crypto regulation on the sidelines of the G20 meetings for finance ministers and central bank governors under the Indian presidency in Bengaluru on Saturday. Commenting on the crypto surveillance, she told reporters:

There needs to be more regulation.

Her statement follows a roundtable she co-chaired with Indian Finance Minister Nirmala Sitharaman. The IMF chief and India’s finance minister agreed that besides debt restructuring, cryptocurrency regulation is a priority area for India.

Georgieva explained that the IMF, Financial Stability Board (FSB) and Bank for International Settlements (BIS) are committed to establishing a basis for the regulation of cryptocurrencies that are not issued by governments or central banks. . “We need to differentiate digital currencies from central banks [CBDCs] which are state-backed and stablecoins, and privately issued crypto assets,” she pointed out.

“There must be a very strong push for regulation,” the IMF chief stressed, noting:

If regulation fails, if you delay doing so, then we should not raise the table by banning these assets because they can create a risk to financial stability.

The IMF board this week provided guidance to help countries develop effective crypto policies. While most board directors agreed that “hard bans are not the best option, but targeted restrictions could apply”, a few felt that “outright bans should not not be excluded”.

Further, the board advised, “Crypto assets should not be granted official currency or legal tender status in order to safeguard monetary sovereignty and stability.” Georgieva also said on Saturday:

Crypto assets are nothing, they cannot be accepted as legal tender.

The Fund has opposed El Salvador accepting bitcoin as legal tender since the country made the crypto a national currency in September 2021. However, the IMF said earlier this month that until At present, the risks associated with El Salvador’s adoption of BTC as legal tender have not materialized.

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What do you think of IMF Managing Director Kristalina Georgieva’s statements on crypto? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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