The Covid-19 pandemic, which has been affecting the whole world since March 2020 cryptocurrencies It has led to tremendous increases in popularity and use.
Highlighting the increasing use of cryptocurrencies UN commerce and development body UNCTADin developing countries, in a recent report cryptocurrency called for action to limit its use.
UNCTAD warned that although cryptocurrencies provide convenience to some individuals and institutions, they are an unstable financial asset that can bring social risks and costs.
The UN agency said that cryptocurrencies could reduce the effectiveness of capital controls that developing countries typically use to ensure macroeconomic stability.
“Recent cryptocurrency shocks in the market show that holding crypto has special risks.
Also, if cryptocurrencies continue to grow as a means of payment and unofficially exchange their local currencies, countries’ monetary sovereignty may be compromised.
For these reasons, the International Monetary Fund has expressed the view that there is a risk for some countries to accept cryptocurrencies as legal currency.”
In this context, the agency cryptocurrency exchangesdigital wallets and decentralized finance (DeFi) suggested editing.
“Financial institutions may also be prohibited from holding cryptocurrencies or offering related products, including stablecoins.”
Calling for global coordination on taxation and regulation of cryptocurrencies, agency officials also said: cryptocurrency He also suggested imposing restrictions on advertisements.
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