By 
Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), has emphasized the imperative need for robust regulation in the cryptocurrency realm to protect global financial stability.
During a digital currency conference in Seoul on Thursday, Georgieva underscored the potential risks associated with the widespread adoption of cryptocurrencies. She expressed concerns about the potential impact on macro-financial stability and stressed the necessity of effective regulation to prevent disruptions in monetary policy transmission, capital flow management measures, and fiscal sustainability, especially in light of volatile tax collection.
“Our goal is to make a more efficient, interoperable, and accessible financial system by providing rules to avoid the risks of crypto, and infrastructure by leveraging some of its technologies,” remarked Georgieva during the joint conference with the South Korean government and central bank.
She clarified that regulations are not intended to revert to a pre-crypto era or stifle innovation. Georgieva highlighted that well-crafted rules can serve as catalysts, steering and guiding innovation in a positive direction.
In a panel discussion on the development of digital money, Georgieva emphasized that policymakers have the option to actively participate and contribute to its improvement or risk being left behind as the evolution of digital money progresses.
A recent study conducted by KuCoin revealed that 35% of Nigerians aged between 18 and 60 are involved in investing or trading bitcoin and other cryptocurrencies.
In 2022, Nigeria’s Securities and Exchange Commission signaled a potential shift in the government’s stance on cryptocurrency usage by publishing a new set of rules aimed at regulating digital assets. These regulatory developments indicate a growing awareness and responsiveness to the challenges posed by the widespread use of cryptocurrencies.
Comments