The International Monetary Fund (IMF), a major financial agency of the United Nations (UN), has recently released a paper evaluating crypto adoption worldwide through research reports. In the paper, the agency said banning crypto assets may not be an effective approach in the long term for countries seeking to manage risks. The IMF stated that the countries should focus on addressing the drivers directing citizens to the crypto assets instead of completely banning them. - The institution counted citizens' unmet digital payment needs and the need for improved transparency among these drivers.
- The agency also advised countries to record crypto asset transactions in national statistics to constantly evaluate demand and traffic.
- The paper pointed out that the emphasis should be on reducing risks from digital assets while leveraging the benefits of the market.
- The IMF also cited a research report revealing that Latin American countries like Brazil, Argentina, and Colombia are among the top 20 regions in crypto adoption.
- The agency underlined that the citizens in these countries seek the benefits of digital assets, including protection against uncertain domestic macroeconomic conditions, improved financial inclusion for unbanked populations, and cheaper and faster payments.
- The report added that regulations could also be more helpful and fruitful than a potential ban.
In February, the IMF's managing director, Kristalina Georgieva, showed a similar approach, stating that they were quite in favor of regulating crypto rather than directly banning it. - However, Georgieva also underlined that the option to ban cryptocurrencies should not be put aside if they pose a significant risk to financial stability or consumer protection.
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