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Gita Gopinath, chief economist at the International Monetary Fund (IMF), calls for comprehensive international regulation of the crypto sector.

At an event organized by the National Council for Applied Economic Research (NCAER) in India, the IMF’s chief economist, Gita Gopinath, discussed cryptocurrencies.

The director of a research division at the IMF has been on leave from Harvard University. There she holds the John Zwaanstra Professorship for International Studies and Economics.

Gopinath is slated to become the IMF’s first deputy executive director early next year. She said, “It appears that cryptocurrencies are more attractive to emerging markets than to developed economies.”

She also stated that “cryptocurrencies are a particular challenge for emerging economies” and continued: “In emerging economies there are exchange rate controls, capital flow controls, and cryptocurrencies can have an impact.”

The economist added: “Regulation is absolutely important for this sector. If people use them as a form of investment, then the rules that apply to other asset classes should apply here too.

She also stated that a ban on cryptocurrencies would bring practical challenges due to their decentralized nature and stressed the need for a global policy for cryptocurrencies. After all, more and more people are investing in Profit Builder and build their portfolios in this way.

Just last week, the IMF made some recommendations for regulating cryptocurrencies, pointing out that cross-border collaboration and cooperation in regulating cryptocurrencies is urgently needed.

The authors said: “Crypto assets have the potential to change the international monetary and financial system in profound ways.” After all, thanks to the decentralized system, they are also causing paradigm shifts.

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So far, only a few countries have fully accepted crypto currencies such as Bitcoin or Ether. El Salvador is considered a pioneer in this regard and has, for example, placed Bitcoin as an officially recognized currency alongside the US dollar. This ensured that the Central American country was warned by the IMF.

Sources: PublicDomain on December 26th, 2021

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