IMF advocate for stronger crypto regulation

To protect the integrity of the global financial system, International Monetary Fund Managing Director Kristalina Georgieva has emphasized the necessity of comprehensive regulation in the cryptocurrency field.

Georgieva, who spoke on Thursday at a symposium on digital currencies in Seoul, emphasized the possible threat that broad use of cryptocurrencies could represent, expressing worries about how it would affect macro-financial stability.

According to Georgieva, efficient regulation was necessary to avoid hiccups in the implementation of monetary policy, capital flow control strategies, and fiscal sustainability—especially in light of fluctuating tax revenue.

“Our goal is to make a more efficient, interoperable, and accessible financial system by providing rules to avoid the risks of crypto, and infrastructure by leveraging some of its technologies,” Georgieva said at the joint conference with the South Korean government and central bank.

She added that “Rules are not meant to return us to a pre-crypto world, nor to squash innovation.

“Good rules can spur and guide innovation.”

In a panel discussion on the evolution of digital money, Georgieva stated that policymakers could either be involved in it and assist in making it better, or they could stay out of it because it would still happen.

Thirty-five percent of Nigerians between the ages of eighteen and sixty were trading or investing in Bitcoin or other cryptocurrencies, according to a recent KuCoin study.

A new set of regulations about digital assets was released by Nigeria’s Securities and Exchange Commission in 2022, suggesting a possible shift in the government’s stance on the widespread use of cryptocurrencies.