The Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva said that cryptocurrency is a ‘speculative’ and ‘high-risk’ investment. Backing India’s stance on crypto, she feels banning cryptocurrency is a viable option.
Cryptocurrency has been on top of the agenda in this year’s G20 summit held under India’s presidency. India denies favoring the speculation of cryptocurrency.
Earlier this month, Finance Minister Nirmala Sitharaman talked virtually with Kristalina Georgieva. Sitharaman urged the multilateral funding agency to develop a globally coordinated approach to regulate crypto assets.
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Georgieva highlighted that her views are only towards private virtual currencies that aren’t backed by regulated assets. Stablecoins and Central Bank Digital Currency (CBDC) were not the topics of debate. Also, she emphasized the need for more regulations for cryptocurrency.
“We have to differentiate between central bank digital currencies backed by the state and stablecoins, and crypto assets privately issued. Second, there has to be a very strong push for regulation. And third, 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,” she said.
Georgieva talked to interviewers on the sidelines of the G-20 meeting in Bengaluru. She diminished the possibility of cryptocurrency as a legal tender even though a few nations want to declare crypto as a legal currency.
