The Managing Director of the International Monetary Fund, Kristalina Georgieva, has emphasized the importance of comprehensive regulation in the cryptocurrency area in order to protect global financial stability.
According to The Punch, Georgieva raised concerns about the influence of broad cryptocurrency adoption on macro-financial stability during her speech at a digital currency conference in Seoul on Thursday. She also emphasized the possible threat posed by this trend.
According to Georgieva, efficient regulation was necessary to avoid hiccups in the implementation of monetary policy, capital flow control strategies, and fiscal sustainability, especially in light of fluctuating tax revenue.
“We want to create a more accessible, interoperable, and effective financial system by utilizing some of its technologies in infrastructure and by establishing regulations to mitigate the risks associated with cryptocurrencies,” Georgieva stated during the joint press conference with the central bank and government of South Korea.
“Rules are not meant to squash innovation or take us back to a pre-crypto world,” she continued.
“Innovation can be encouraged and guided by good rules.”
In a panel discussion on the evolution of digital money, Georgieva stated that policymakers could either be involved in it and assist make it better, or they could stay out of it because it would still happen.
According to a recent KuCoin poll, 35% of Nigerians between the ages of 18 and 60 were either trading or investing in bitcoin or other cryptocurrencies.
Nigeria’s Securities and Exchange Commission signaled a possible shift in the government’s stance towards the widespread usage of cryptocurrencies in 2022 when it unveiled a new set of regulations intended to regulate digital assets.
