IMF Prefers To Regulate Crypto Than Banning It Outright

In a world where folks were thinking crypto will get banned the IMF managing director, Kristalina Georgieva stated that they should regulate crypto industry for a better future. 

The International Monetary Fund which was responsible for the banning of the agency said that they will reconsider the regulation and differentiation of the agency. Rather than banning it straight betterment was the main concern of The International Monetary Funds. Other than that, the Monetary Fund is keeping in mind the nuclear option. 

A meeting was held in Bengaluru, India where the IMF Managing Director Kristalina Georgieva was speaking with G20 finance ministers. She explained it clearly that the finance ministers of the United States of America see digital assets as one of the most important assets. Furthermore, how they want to change the regulation process. 

“We are very much in Favor of regulating the world of digital money,” and this is a top priority” 

Recently, there has been a hustle around the cryptocurrency world on this topic all because of some comments of Kristalina in her interview published on 27, Feb. In that interview, she showed some sort of confusion regarding the whole situation. She stated. 

“Our first objective is to differentiate between central bank digital currencies that are backed by the state and publicly issued crypto assets and stablecoins.” 

She showed a framework to go through such situations in the meantime. The differentiation seems important to regulate cryptocurrency. 

Additionally, she cleared the difference between fully backed stablecoins and their advantages also non-backed crypto assets in that regard. She stated. 

Fully backed stablecoins create a “reasonably good space for the economy,” but non-backed crypto assets are speculative, high risk, and have no money. 

She kept on saying that added regulation is needed in this regard. 

It has been heard that she has recommended global regulation standards while saying that cryptocurrency and its assets are never safe and legal because they never got back up. 

Not only she informed the world of the whole situation, but she gave a whole framework to work upon to get the right consequences. Nevertheless, she also warned the whole agency that the option to ban it must be still considerable. She quoted “should not be taken off the table” if you want to avoid a greater risk of financial stability then they must look to their advice. 

However, in the end, she said that the most preferable action would be to differentiate, regulate and improve rather than banning the whole agency. The reason why she said this was because if the agency is improved in some way or the other it’s the best for the economy. 

Lastly, when the interviewer asked her what would cause the ban of the crypto agency, she said that consumers may go out of hand with the whole situation because they would consider it a primary catalyst. 

Many organizations like IMF, Financial Stability Board, and The Bank for International Settlements are working together to form a committee to give the world a final framework to work upon. This would probably happen in the 2nd half of the year.