During a digital currency conference in Seoul, the Managing Director of the International Monetary Fund, Kristalina Georgieva, emphasized the importance of implementing thorough regulations within the cryptocurrency sphere to protect global financial stability.
Georgieva expressed concerns about the potential risks associated with widespread crypto adoption, pointing out its possible impact on macro-financial stability. She stressed the necessity of effective regulation to mitigate potential disruptions in monetary policy transmission, manage capital flows, and ensure fiscal sustainability, especially in dealing with the volatility of 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,” Georgieva said at the joint conference with the South Korean government and central bank.
She added that “Rules are not meant to return us to a pre-crypto world, nor to squash innovation.
“Good rules can spur and guide innovation.”
On the development of digital money, Georgieva said in a panel discussion that policymakers could either be part of it and help do it better or be left out of it because it would be done anyway.
A recent study from KuCoin found that 35 percent of Nigerians aged between 18 and 60 were investing or trading in Bitcoin or other cryptocurrencies.
In 2022, Nigeria’s Securities and Exchange Commission published a new set of rules aimed at regulating digital assets, signaling a potential change of attitude from the government towards the widespread use of cryptocurrencies.
