IMF Seeks Regulations on Private Cryptocurrencies: Kristalina Georgieva

• IMF Managing Director Kristalina Georgieva has revealed that the International Monetary Fund is seeking to regulate private cryptocurrencies.
• She stated that the IMF does not want an outright ban on digital assets and wants to differentiate and regulate crypto assets.
• Georgieva pointed out that cryptocurrencies could not be legal tender since they are not backed, but added that the option to ban crypto assets should not be completely dismissed if they begin to pose a greater risk.

IMF Seeking More Regulations on Private Cryptocurrencies

The International Monetary Fund is seeking more regulations on private cryptocurrencies, according to Managing Director Kristalina Georgieva. She made this statement while speaking at the G20 finance ministers‘ meetings in India. The IMF doesn’t want an outright ban on digital assets, but instead wants to differentiate and regulate crypto-assets.

Cryptocurrencies Cannot Be Legal Tender

El Salvador recently became the first country in the world to make Bitcoin a legal tender, however Georgieva said this was not possible due to them being unbacked by states. She added that if crypto-assets become too risky then banning them should still be considered as an option.

Differentiating Between Central Bank Digital Currencies & Stablecoins

Georgieva stated that their first objective was to distinguish between central bank digital currencies (backed by states) and publically issued stablecoins. Fully-backed stablecoins can create a good space for cryptocurrency economies, however non-backed crypto-assets are highly speculative and very risky investments.

Regulating Digital Money Is A Top Priority

The IMF director explained how she wanted the UN financial agency’s current approach towards digital money and what it would like to achieve through regulation of it. She said regulating digital money is now a top priority for them as they do not want an all out ban on cryptos or other digital assets yet with high risks involved they must also consider banning options if needed in future.

Confusion Around Classification Of Digital Money Exists

Georgieva also mentioned there is still much confusion around classifying digital money which makes it difficult for regulators worldwide when looking into these new technologies and formulating laws accordingly. As such more clarification is required before any further steps can be taken regarding regulating private cryptocurrencies globally