The chief economist of the International Monetary Fund (IMF) says regulation is “absolutely important” for the crypto sector. She added that a cryptocurrency ban, such as India might consider, would pose practical challenges given its decentralized nature.
IMF chief economist for cryptocurrency and its regulation
Gita Gopinath, Chief Economist at the International Monetary Fund (IMF) allegedly discussed cryptocurrency on Wednesday at an event organized by the National Council of Applied Economic Research (NCAER).
Gopinath is also an economic advisor to the IMF and director of its research division. She is on public service leave at Harvard University’s Economics Department, where she is the John Zwaanstra Professor of International Studies and Economics. Gopinath is slated to become the IMF’s first deputy executive director early next year.
It seems that cryptocurrencies are more attractive to emerging markets than to developed countries.
She noted that “Cryptocurrencies are a particular challenge for emerging markets,” she continued, “Emerging markets have exchange rate controls, capital flow controls, and cryptocurrencies can affect them.”
Regulation is absolutely essential to this sector. If people use this as an asset, the rules that apply to other asset classes should apply here too.
She added that the ban on cryptocurrencies would present practical challenges given their decentralized nature, and stressed the need for global policies regarding cryptocurrencies.
Last week the IMF outlined a few recommendations on how cryptocurrency should be regulated and notes that there is an urgent need for cross-border collaboration and collaboration in regulating cryptocurrency. The authors said, “Crypto assets are potentially profoundly changing the international monetary and financial system.”
The IMF too warned El Salvador opposed the use of Bitcoin as its national currency in November. The country made Bitcoin legal tender alongside the US dollar in September and has bought 1,370 bitcoins for his treasury.
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Source: Crypto News Austria