The Coin Leaks News: As cryptocurrencies become more prominent and widely used for alternative means of payments, the governments, and other organizations around the globe debate the best way to handle these new currencies to be brought under more strict control.
One of these institutions includes that of the International Monetary Fund (IMF) which has turned its focus towards India and has identified cryptocurrency regulation as a top mid-term concern, as per Tobias Adrian, the Financial Director and Counselor of IMF’s Monetary and Capital Markets Department, The Economic Times reported on April 20.
On the eve of the IMF Spring meeting, Adrian stated that IMF’s outlook for India was “a quite favorable one” and elaborated:
“I think there are many opportunities and growth (in India is coming back). There’s a recovery. There’s a lot of excitement around new growth opportunities, new developments.”
As for the goals of the fund’s program for India, the president stated that “regulating crypto is definitely very important” in terms of long-term structural issues India will have to tackle in the near term.
According to Adrian the researcher, this research is being done globally:
“Within the financial stability board, we are trying to come up with global standards for crypto asset regulations. I think that’s important for India to also adopt. Of course, I know that India has changed the taxation of crypto assets and that’s a welcome move.”
India looks at CBDCs
Additionally, Adrian stated that “India is currently exploring central digital bank currencies (CBDCs)” which that could be very vital for financial inclusion and the development of financial markets.”
He also argued that addressing remaining regulatory issues within the non-bank and banking system was essential for the economic growth and development of the nation.
The risk of private crypto
The finance minister of India Nirmala Sitharaman has urged for an agreement within the country regarding dealing with cryptocurrency, pointing out the risk of misuse of private digital currencies to fund laundering or terror financing.
She was a participant in an event on April 19 during which she spoke about regulation as the best solution to these issues that she believes cannot be solved by a single country.
According to her explanation:
“Regulation using technology is the only answer. It will have to be so adept, that it is not behind the curve, but be sure that it is on the top of it. And that’s not possible if any one country thinks it can handle it. It has to be across the board.”
Responding to her concerns, IMF director Kristalina Georgieva announced that the IMF would broaden its crypto-related work in the country, with a particular focus on cyber security concerns and regulation of private digital currencies and interoperability of CBDCs.
In addition in the world, the IMF has issued a warning about cryptocurrency because one of their most recent reports has revealed that cryptocurrency usage was more prevalent in countries with corruption, as well as more stringent capital restrictions. In the same way, the organization is against any crypto-related bans and calls for more regulation instead.