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HomeCrypto NewsIMF Chief Economist: 'Regulation Is Absolutely Essential' for Crypto Sector

IMF Chief Economist: ‘Regulation Is Absolutely Essential’ for Crypto Sector

According to the International Monetary Fund’s chief economist, regulation is essential for the crypto industry. A ban on cryptocurrency, such as India might be considering, would present practical problems due to their decentralized nature.

Chief Economist at IMF on Cryptocurrency Regulation and Its Regulation
Gita Gopinath, chief economist at the International Monetary Fund (IMF), reportedly spoke out about cryptocurrency Wednesday at an event hosted by the National Council of Applied Economic Research.

Gopinath also serves as the IMF’s economist counselor and directs its research department. Gopinath is currently on leave from Harvard University’s Economics department, where she is John Zwaanstra Professor of International Studies and of Economics. Gopinath will be the IMF’s first deputy managing director in the early part of next year.

She stated:

It seems that cryptocurrencies are more appealing to emerging markets than for developed countries.

She stated that “cryptocurrencies are a particular problem for emerging markets”, and that “emerging market have exchange rate control, capital flow control, and cryptocurrencies could impact that.”

Gopinath also added:

This sector needs regulation. This sector should be regulated if it is used as an investment asset.

She said that bans on cryptocurrency would be difficult because of their decentralized nature. This highlights the need for a global policy.

The IMF made some recommendations last week on how cryptocurrency should regulate. It noted that it is urgent for cross-border cooperation and collaboration in cryptocurrency regulation. According to the authors, “Crypto assets could change the international monetary system and financial system in profoundly important ways.”

In November, the IMF warned El Salvador against using bitcoins as its national currency. In September, the country made bitcoin legal tender along with the U.S. dollars and purchased 1 ,370 Bitcoins for its Treasury.

What did you think of the comments made by the chief economist at IMF? Comment below.

Kevin Helms

Kevin, a student of Austrian Economics and a evangelist since then. His interests include Bitcoin security, open source systems, network effects, and the intersection of cryptography and economics.

Image Credits: Shutterstock. Pixabay. Wiki Commons.

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Henry Hicks
Henry Hickshttps://nonfungibletalk.com
NFT and Crypto Enthusiast. Loves Travelling and Exploring the Metaverse!
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