The IMF says banning crypto will cause problems in the future.
After the tightening of the regulatory environment in the USA, the fate of crypto is curious. However, a statement came from the IMF on this issue.
IMF: Banning Crypto Will Create Problems In The Future
The International Monetary Fund (IMF) published a report on the regulation and use of digital currencies in Latin America and the Caribbean, stating that banning cryptocurrencies may not be the best approach.
The IMF report touched upon several approaches to the adoption of cryptocurrencies and central bank digital currencies (CBDCs). These approaches have included the launch of the Bahamas’ own CBDC, the Sand Dollar, where Bitcoin is accepted as a legal tender in El Salvador.
The IMF noted that countries in Latin America and the Caribbean, such as Brazil, Argentina, Colombia and Ecuador, are among the world’s highest in adoption of digital assets. These countries are adopting digital assets to help those without bank accounts make faster and cheaper payments. Most central banks in the region are also considering or are adopting digital currencies, according to the report.
The IMF noted that well-designed CBDCs can increase the availability, durability and efficiency of payment systems and increase financial inclusion. He also said that this approach may not be effective in the long run, although some countries have banned crypto assets completely due to the risks. According to the IMF, the region should address drivers of crypto demand, such as citizens’ unmet digital payment needs, and focus on increasing transparency by recording crypto-asset transactions in national statistics.
