IMF would rather regulate crypto instead of banning them: IMF Managing Director
During the G20 finance ministers' meetings in India, Georgieva explained the IMF's stance on digital assets and emphasised the importance of regulating them
International Monetary Fund managing director Kristalina Georgieva; Image: Omer Messinger/Getty Images
As per International Monetary Fund managing director Kristalina Georgieva, the IMF would rather regulate and distinguish crypto assets instead of completely banning them, although banning them is still an option.
During the G20 finance ministers' meetings in Bengaluru, India, Georgieva explained the IMF's stance on digital assets and emphasised the importance of regulating them. The regulation of digital currency is a significant priority for the organisation.
In a recent interview with Bloomberg, Georgieva discussed the potential ban on crypto. She stated that there is still confusion around how to classify digital money and that the first task is to differentiate between central bank digital currencies and publicly issued crypto assets and stablecoins.
Fully-backed stablecoins are beneficial to the economy, but non-backed crypto assets are speculative, high-risk, and not money.
Georgieva referred to a recent paper that recommended global regulation standards, which stated that crypto assets could not be legal tender because they are not backed.
