IMF questions the case for banning cryptocurrencies

Prohibiting cryptocurrencies may not be the best way to reduce the risks associated with them. To this conclusion пришли IMF experts МВФ.

In February 2023, the head of the organisation Kristalina Georgieva did not rule out a ban on digital assets amid higher risks to financial stability. According to her, a more acceptable option was the regulation of cryptocurrencies.

In a fresh IMF staff document, analysts recommended that countries focus on removing factors that stimulate demand for this asset class, as well as on meeting the needs for digital payments.

They also proposed increasing transparency by including crypto transactions in national statistics.

Banning digital assets may ‘prove ineffective in the long run’, hindering countries from obtaining the benefits associated with them, the experts noted.

With the right design CBDC can enhance the usability, resilience and efficiency of payment systems and expand access to financial services, the article says.

The IMF is working on a platform for cross-border operations with national digital currencies.

In May, the organization released a report on the first CBDC in Africa — нигерийской eNaira. The IMF praised the authorities’ work.