IMF chief urges for more regulation of private cryptocurrencies, citing financial stability risks

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), has called for greater regulation surrounding private cryptocurrencies during a press briefing at the G20 Meeting in Bengaluru.

She asserted that “private crypto assets are not money.” She urged stringent regulations to be implemented, noting, “If regulation fails, if you’re slow to do it, then we should not take off the table or ban those assets because they may create financial stability risk…”. Her comments highlight the need for increased oversight of private cryptos to mitigate potential risks and maintain financial stability.

At the roundtable with Union Finance Minister Nirmala Sitharaman, Kristalina Georgieva warned of potential financial stability issues private cryptocurrencies pose and called for more regulation. She also highlighted India’s positive economic outlook in the global context, noting that “2023 is a challenging year due to slowing global growth, compounded by the ongoing conflict in Ukraine.” Georgieva shared her remarks with reporters following the roundtable.

The IMF Chief recently commented on debt restructuring amidst disagreement at a time when Sri Lanka, Bangladesh, and Pakistan are seeking urgent assistance from the IMF in light of economic slowdown due to macroeconomic and geopolitical trends exacerbated by the Russia-Ukraine war and the Covid pandemic. She stated that “we now have the global sovereign debt roundtable with consideration of all public and private creditors,” noting that while disagreements remain, this is a step towards resolving the issue.