{"id":2190,"date":"2021-12-19T05:24:31","date_gmt":"2021-12-19T05:24:31","guid":{"rendered":"http:\/\/egrowonline.com\/?p=2190"},"modified":"2021-12-19T05:24:31","modified_gmt":"2021-12-19T05:24:31","slug":"imf-chief-economist-says-regulation-is-absolutely-important-for-crypto-sector-regulation-bitcoin-news","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=2190","title":{"rendered":"IMF Chief Economist Says ‘Regulation Is Absolutely Important’ for Crypto Sector \u2013 Regulation Bitcoin News"},"content":{"rendered":"


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The chief economist at the International Monetary Fund (IMF) says that regulation is \u201cabsolutely important\u201d for the crypto sector. She added that banning cryptocurrencies, like what India could be considering doing, would pose practical challenges given their decentralized nature.<\/strong><\/p>\n

IMF\u2019s Chief Economist on Cryptocurrency and Its Regulation<\/h2>\n

International Monetary Fund (IMF) chief economist Gita Gopinath reportedly<\/a> discussed cryptocurrency Wednesday at an event organized by the National Council of Applied Economic Research (NCAER).<\/p>\n

Gopinath is also the IMF\u2019s economic counselor and director of its research department. She is on leave of public service from Harvard University\u2019s economics department where she is the John Zwaanstra professor of international studies and of economics. Gopinath is slated to be the first deputy managing director of the IMF early next year.<\/p>\n

She said:<\/p>\n

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It would seem that cryptocurrencies are more attractive for emerging markets compared to developed economies.<\/p>\n<\/blockquote>\n

Noting that \u201ccryptocurrencies are a particular challenge for emerging markets,\u201d she further opined, \u201cemerging markets have exchange rate controls, capital flow controls, and cryptocurrencies can impact that.\u201d<\/p>\n

Gopinath added:<\/p>\n

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Regulation is absolutely important for this sector. If people are using this as an investment asset, then the rules which are there for other investment classes should apply here as well.<\/p>\n<\/blockquote>\n

She added that banning cryptocurrencies would pose practical challenges, given their decentralized nature, emphasizing the need for a global policy on cryptocurrency.<\/p>\n

Last week, the IMF outlined some recommendations<\/a> of how cryptocurrency should be regulated, noting that there is an urgent need for cross-border collaboration and cooperation on cryptocurrency regulation. The authors said, \u201cCrypto assets are potentially changing the international monetary and financial system in profound ways.\u201d<\/p>\n

The IMF also warned<\/a> El Salvador in November against using bitcoin as a national currency. The country made bitcoin legal tender alongside the U.S. dollar in September and has purchased<\/a> 1,370 bitcoins for its treasury.<\/p>\n

What do you think about the IMF chief economist\u2019s comments? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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