‘Rules, infrastructure needed to prevent crypto risks’: IMF chief Kristalina Georgieva
SEOUL: Crypto assets have been around for more than a decade, but it’s only now that the voice to regulate them has become louder. On Thursday, the International Monetary Fund (IMF) chief said that cryptocurrencies need to be regulated with rules and infrastructure as they pose risks to financial stability.
“The challenge is that high crypto asset adoption could undermine macro-financial stability,” the IMF’s managing director, Kristalina Georgieva, said at a conference in Seoul on digital currencies, Reuters reported.
“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 further added.
Global cooperation key to countering threats like crypto: FM Sitharaman
Global cooperation and a framework are essential to counter threats emanating from areas such as cryptocurrencies, Finance Minister Nirmala Sitharaman said in September 2023. “As much as you build firewalls, there are more and more newer ways in which attacks are being made. Crypto (is a) threat as well as an opportunity,” Sitharaman said at the Global Fintech Fest in Mumbai.
Earlier in April 2023, the Finance Minister stressed the need for a globally coordinated policy response on crypto assets that considers the full range of risks, including those specific to emerging markets and developing economies.
Crypto has long been a thorny issue in India. RBI governor Shaktikanta Das has voiced his concerns about the digital tokens several times, saying they pose threats to financial stability.
In other news, trend-following and niche hedge funds that trade cryptocurrencies and insurance-linked assets attracted the most new investor money in the first three quarters of 2023, Reuters reported quoting a global report by research firm Preqin.
-With inputs from Reuters
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Published: 14 Dec 2023, 06:53 AM IST
