IMF’s Chief Economist sees no reason to ban cryptocurrencies

Gita Gopinath stated that digital assets are a problem for emerging markets and that strict regulation needs to be established

16.12.2021 - 12:10

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What’s new? Gita Gopinath, Chief Economist at the International Monetary Fund (IMF), gave her views on cryptocurrencies during a lecture organized by the National Council of Applied Economic Research. This is reported by The Economic Times.

Information on The Economic Times website

What did the IMF Chief Economist say? She stated that digital assets are a problem for emerging markets and that strict regulation needs to be established. However, she admitted that banning cryptocurrencies is not a way out that the IMF has. Gopinath referred to other problems related to capital inflows and foreign exchange. Thus, she calls for a coordinated approach in their regulation. Speaking about why banning digital assets is not the option, Gopinath added:

“Regulating crypto assets and currencies is essential, especially for emerging and developing economies. Many crypto exchanges are located offshore and are not subject to [the country’s] regulation… There is a need for a global policy on it urgently. No individual country could solve this problem on its own.”

What is going on in India? Recently, Gita Gopinath, a citizen of India, held a meeting with Narendra Modi, the country's Prime Minister. The government under his leadership has stated that it will not ban digital currencies. However, the authorities are guided by the collective actions of other states to regulate the crypto space.

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