The International Monetary Fund (IMF) has issued a press release on crypto assets that has some crypto enthusiasts worried.
Regarding a future potential ban on crypto, the press release said:
“Directors agreed that strict bans are not the first-best option, but that targeted restrictions could apply, depending on domestic policy objectives and where authorities face capacity constraints. A few Directors, however, thought that outright bans should not be ruled out.”
The IMF, established on 27 December 1945, “works to achieve sustainable growth and prosperity for all of its 190 member countries” by “supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being.”
According to the IMF’s press release, on 8 February 2023, the Executive Board of the International Monetary Fund (IMF) discussed a board paper on “Elements of Effective Policies for Crypto Assets.” This seems to have resulted in mixed reactions from the crypto community. Although a few welcome the guidelines and see them as a step towards greater legitimacy and acceptance of crypto, others fear that the IMF’s ultimate goal may be to clamp down on and even ban cryptocurrencies altogether.There are some disagreements over restructuring debt for distressed economies, the chief of the International Monetary Fund said on Saturday on the sidelines of a G20 meeting, adding that banning private cryptocurrencies should be an option.
IMF Managing Director Kristalina Georgieva remarked, on debt restructuring, while there are still some differences, we now have the global sovereign debt roundtable with consideration of all public and private creditors.Apart from resolving debt, regulating cryptocurrencies is another critical topic for India, which Georgieva agreed with.
“We have to differentiate between central bank digital currencies that are backed by the state and stablecoins, and crypto assets that are privately issued,” stated Georgieva.”We just finished a session in which it was clear that there is a commitment to bridging differences for the benefit of countries,” Georgieva added.
