The International Monetary Fund (IMF) will prefer to differentiate and regulate cryptocurrencies rather than impose a direct ban, but the option to ban remains on the table for now. It also focused on specific altcoin projects. Here are the latest statements from the IMF…
IMF President made a crypto money statement: These altcoin projects may be affected
Speaking on the sidelines of the G20 finance ministers meetings held in Bengaluru, India, IMF Managing Director Kristalina Georgieva explained how the United Nations financial institution views crypto assets and what she wants to see in terms of regulation. “We are in favor of regulating the cryptocurrency world,” she said, adding that this is a top priority.
In an interview with Bloomberg published Feb. 27, he answered a question regarding his recent comments on a potential full ban on cryptocurrencies. He said there is still a lot of confusion about the classification of cryptocurrencies. “Our initial goal is to differentiate between government-backed central bank digital currencies and publicly traded crypto assets and stablecoins,” Georgieva said.
Examples of the stablecoins Georgieva mentioned are Tether (USDT), USD Coin (USDC), Binance USD (BUSD), TrueUSD (TUSD), Pax Dollar (USDP), USDD (SDD), Gemini Dollar (GUSD). We can show as
IMF and BIS prepare for regulations
Fully-backed stablecoins create “pretty good space for the economy,” but unsupported cryptoassets are “speculative, high-risk, and not money,” according to Georgieva. Citing a recent article recommending global regulatory standards, crypto assets cannot be legal because they are not backed, she said. However, he warned that the option to ban cryptocurrencies “should not be taken off the table” if they begin to pose a greater risk to financial stability.
Still, good regulations, predictability and consumer protection would be a better option and prohibition would not need to be considered, Georgieva said. When asked what could have caused the decision to ban crypto, he said that failing to shield consumers from the rapidly evolving world of crypto assets would be the primary catalyst. As we have reported as Kriptokoin.com, the IMF, Financial Stability Board and Bank for International Settlements (BIS) are jointly preparing the regulatory framework guidelines to be published in the second half of the year.
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