IMF backs regulating cryptocurrencies rather than banning them

The International Monetary Fund (IMF) would prefer to regulate digital assets, but does not rule out banning them if risks to financial stability rise. This was stated by Managing Director Kristalina Georgieva in an interview with Bloomberg.

She said that regulation of the industry is a top priority for the Financial Stability Board, the IMF and the Bank for International Settlements.

Our first priority is to distinguish between central bank digital currencies [CBDC], state-backed, and publicly issued crypto assets and stablecoins, she explained.

At the same time, the option to ban cryptocurrencies ‘should not be taken off the table’ in the event regulation slows and a higher risk to consumers or financial stability arises, she added.

Earlier called for a ‘coordinated response’ to cryptocurrencies.

Earlier in September 2022 the IMF emphasised that bankruptcies of issuers, exchanges and hedge funds have provided additional impetus for the drive to create comprehensive regulation of digital assets.