International Monetary Fund (IMF) Managing Director Kristalina Georgieva said the fund is quite in favor of regulating crypto rather than directly banning it.
Georgieva explained the IMF's stance on the world of digital money on the sidelines of the G20 meeting in India.
- In another interview with Bloomberg, Georgieva also stated that it mainly aims to distinguish between central bank digital currencies (CBDCs) backed by states and publicly traded crypto assets and stablecoins.
- The IMF executive underlined that non-backed crypto assets are speculative, risky, and not actual money.
- She also added that the option to ban cryptocurrencies should not be put aside if they pose a significant risk to financial stability or consumer protection.
- Georgieva further stressed that good regulations and predictability would be better options than enforcing a ban.
- The IMF is the major financial agency of the United Nations.
- In the second half of 2023, the agency is expected to release the regulatory framework recommendations for crypto in collaboration with the Financial Stability Board and the Bank for International Settlements.
