IMF Urges Countries to Consider Banning Cryptocurrencies

blockchain.news:

During a meeting of the Group of Twenty (G20) that took place on February 25, United States Treasury Secretary Janet Yellen emphasized how important it was to develop a robust regulatory framework for cryptocurrencies.

Yellen stated it was «essential to put in place a solid regulatory framework» while she was speaking to Reuters. In addition to this, she emphasized that the United States is not advocating for a «absolute prohibition on crypto activity.»

Yellen's comments follow earlier ones made by the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, who stated that prohibiting cryptocurrencies should be an option: «There has to be very strong push for regulation… if regulation fails, if you're slow to do it, then we should not take off the table banning those assets, because they may create financial stability risk.» Yellen's comments follow Georgieva's earlier statements.

In addition, Georgieva emphasized to the media that it is essential to distinguish between stablecoins and cryptocurrencies, which are issued by private enterprises, and central bank digital currencies (CBDCs), which are issued by central banks.

Nirmala Sitharaman, who serves as India's Minister of Finance, has advocated for a unified approach to be taken at the international level to deal with the widespread economic effects of crypto assets. Throughout her time in office, Sitharaman has been a proponent of developing cryptocurrency legislation in collaboration with other governments. For a number of years, the government of India has been debating whether cryptocurrencies should be regulated or outright prohibited.

The International Monetary Fund (IMF) on February 23 issued a plan of action on crypto