Outright Ban Difficult; Global Rules Needed
“If you are going to go into payment systems, you have to make sure you regulate them well … we should just make sure this problem doesn’t get ahead of the regulatory environment that needs to be put in place,” she added.
Gopinath said there is a need for urgent global standards on how to deal with cryptocurrency and that an outright ban will be difficult to execute. “Different countries are approaching the problem depending upon the tools they have. Our general view is an outright ban can be difficult to implement,” she said.
Most cryptocurrency exchanges, she said, are offshore so a “single country placing a ban on these kinds of activities may not be that effective.”
Earlier on Wednesday, addressing an event organised by the National Council of Applied Economic Research (NCAER) on Wednesday, she said, “There are challenges to banning it whether you can end up with truly banning crypto because many exchanges are offshore and they are not subject to regulations of a particular country.”
(Edited by : Yashi Gupta)
First Published: IST