Cryptocurrency Warning and Call from IMF to World Countries!

International Monetary Fund (IMF), cryptocurrency It took a firm stance against the increase in adaptation, with a series of recommendations and calls for a “coordinated response” to member states.

“Wide Adoption of Cryptocurrencies May Worse Financial Risks”

“Wide adoption of crypto-assets could weaken the effectiveness of monetary policy, circumvent capital flow management measures, and exacerbate financial risks,” the organization said in a statement, citing a board discussion about crypto policies earlier this month.

“Directors in general have observed that while the potential benefits expected from cryptoassets have yet to materialize, significant risks are emerging,” the IMF said, arguing that crypto should not be given official currency or legal tender status.

While the directors agree that “strict bans are not the primary option”, “several directors feel that outright bans should not be overlooked.”

The IMF expressed its concerns about the impact of cryptocurrencies on financial stability, financial integrity, legal risks, consumer protection and market integrity.

Discussing a framework of nine elements that could help member countries “develop a comprehensive, coherent and coordinated policy response”, the IMF made recommendations, including the adoption of “net taxation on cryptoassets.”

The organization also said that member states can mitigate the risks posed by cryptocurrencies by working to strengthen the digital infrastructure and “alternative solutions” for cross-border payments and finance.

“Directors noted that regulation should be careful not to hinder innovation and that the public sector could leverage some of the underlying technologies of crypto assets for public policy objectives,” the IMF said.

*Not investment advice.

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