The IMF's Kristalina Georgieva says cryptocurrency should only be banned if it endangers global financial stability.
The Managing Director and Chairwoman of the International Monetary Fund (IMF), Kristalina Georgieva, believes that financial institutions should regulate crypto, not ban it.
During an interview with Bloomberg, Kristalina Georgieva revealed that the IMF is pushing for crypto regulation. According to Georgieva, the IMF believes crypto and other digital assets should be differentiated and regulated.
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The IMF MD noted that, at the moment, there was still a lot of confusion on how digital assets were classified. According to her, the United Nations financial agency is currently figuring out how to regulate cryptocurrencies. She said:
Our first objective is to differentiate between central bank digital currencies that are backed by the state and publically issued crypto assets and stablecoins.
She noted that stablecoins offered a "reasonably good space for the crypto economy." However, according to her, unbacked crypto assets impose a high risk and should not be considered money.
On top of that, the IMF Managing Director added that the option to ban crypto should be left on the table if it posed a significant risk to the global financial system's stability. However, that would only happen if industry players did not ensure consumer protection.
Kristalina Georgieva's comments came amidst a growing Bitcoin (BTC) rally that has been going on since the start of 2023. Thus far, the price of BTC is up over 40%.
In other news, the International Monetary Fund, the Bank of International Settlements, and the Financial Stability Board are working on issuing recommendations for the global crypto regulatory framework. The news was revealed during a meeting with G20 finance ministers and central bank governors.
