The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, emphasized the need for regulation and infrastructure to address the risks posed by cryptocurrencies, stating that unregulated adoption could undermine macro-financial stability.
Speaking at a digital currencies conference in Seoul, Georgieva highlighted concerns regarding the potential impact of widespread cryptocurrency adoption on monetary policy, capital flow management, and fiscal sustainability.
During the joint conference with the South Korean government and central bank, Georgieva outlined the IMF’s goal to establish rules that avoid crypto-related risks while leveraging some of the technology to create a more efficient, interoperable, and accessible financial system. She clarified that the intention behind regulations is not to stifle innovation but to provide guidance and spur responsible innovation.
Georgieva emphasized the importance of participating in the development of digital money, stating that policymakers can either contribute to improving the process or risk being left out.
She highlighted the “tremendous interest” in learning from each other, with a specific focus on understanding emerging markets, citing India’s digital public infrastructure as a noteworthy example. Additionally, Georgieva acknowledged the valuable experience of advanced economies in the history of money.
The IMF chief’s remarks underscore the global recognition of the challenges and opportunities presented by the evolving landscape of cryptocurrencies and digital assets.
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