SAMA chief warns against dangers of crypto currencies

Okaz/Saudi Gazette

RIYADH — The Saudi Central Bank (SAMA) Governor Ayman Alsayari said that crypto currencies and their brokers pose a potential threat to financial stability. “We need good supervision, regulation, and coordination of crypto currency activities. In this context, we support the work and relevant roadmap of the IMF and the Financial Stability Board to address risks related to crypto currencies,” he said.

Aksayari made the remarks while addressing a session on the global economy and crypto assets at the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in Marrakech, Morocco. The meeting was held under the Indian Presidency on Oct. 12-13 on the sidelines of the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG).

The SAMA chief said that the global economy is witnessing massive slowdown compared to past decades, with high levels of inflation rates. “Tight monetary policies are being adopted around the world to bring down inflation. As a result, the global growth rate is expected to be around three percent this year and next,” he said.

The structural reforms in Saudi Arabia have contributed to the non-oil sector achieving strong growth with low and stable inflation, at a time when emerging markets and developing economies face a challenge to confront the current conditions, Alsayari pointed out.

It is noteworthy that the G20 Roadmap for regulating crypto assets and reforming multilateral development banks (MDBs) was unveiled at the G20 finance ministers and central bank governors meetings that concluded on Friday in Marrakesh. This detailed and action-oriented roadmap will help coordinate global policy as well as develop mitigating strategies and regulations on crypto assets while also taking into consideration the specific implications on Emerging Markets and Developing Economies (EMDEs).