- IMF’s Kristalina Georgieva stresses the need for cryptocurrency regulations to prevent financial instability.
- Regulations should promote innovation, not stifle it, and policymakers must actively engage in shaping digital money.
- India plans to establish cryptocurrency regulations, fostering international cooperation by 2027, according to recent announcements.
On Thursday, the managing director of the International Monetary Fund (IMF) mentioned that it’s important to have rules for cryptocurrencies because they can be risky for the stability of our money system, reported Reuters.
The IMF’s managing director, Kristalina Georgieva, said this during a conference about digital money in Seoul. She explained that if many people start using cryptocurrencies, it could create problems for our financial system. It might make it harder for the government to control money, manage the movement of money, and make sure there’s enough money for important things like public services because cryptocurrencies can have unpredictable tax income.
“Our goal is to make a more efficient, interoperable and accessible financial system by providing rules to avoid the risks of crypto, and infrastructure by leveraging some of its technologies.”
Kristalina Georgieva, IMF, managing director
She emphasized that the aim of these regulations is not to take us back to a time before cryptocurrencies or stifle innovation. During a conference held with the South Korean government and central bank, Kristalina Georgieva, the head of the IMF, stated that well-crafted regulations can actually encourage and guide innovation.
In a panel discussion about digital currencies, Georgieva mentioned that policymakers have a choice: they can either actively participate in shaping the development of digital money to make it better, or they can choose to stay out of it, but digital money will continue to evolve regardless.
Georgieva also noted that there is significant interest in countries learning from one another in this field, particularly from emerging markets like India, which has made significant strides in creating a digital public infrastructure. Additionally, she emphasized the value of advanced economies sharing their historical experiences with money, which can provide valuable insights for the future.
On September 10th, India revealed its plan to create regulations for cryptocurrencies. This involves having extensive talks with both foreign countries and local parties to create a framework for overseeing cryptocurrencies in India. According to information from New Delhi, where a two-day summit is taking place, this framework is expected to facilitate the sharing of information between countries on cryptocurrency matters, and this international cooperation is anticipated to begin in the year 2027.
