On Wednesday, International Monetary Fund (IMF) chief economist Gita Gopinath reportedly held a cryptocurrency discussion conference at the National Applied Economic Research (NCAER) event Council.
Gopinath, who is also the IMF's economic counselor and a director in its research department, said that "crypto assets are generally seen as more dominant for developing economies than developing countries".
Thus he is of the view that crypto assets are one of the challenges for the economy of a developing country because basically the market of a developing country economy has exchange rate control and capital flow control. With this, crypto assets can have a detrimental impact on the mechanism.
So the chief economist at the International Monetary Fund (IMF) said that regulation was "very important" for the crypto sector. Still, he added that banning crypto assets, like what India has considered, would pose practical challenges given its decentralized nature.
Gopinath added: “Regulation is very important for this sector. If the public uses this as an investment asset, then the existing rules for other investment classes should apply to the crypto market ”
Last week, the IMF outlined several recommendations on how crypto assets should be regulated, noting that there is an urgent need for cross -border cooperation and co -operation on the regulation of crypto assets.
The IMF also warned El Salvador in November against the use of bitcoin as its national currency. The country made bitcoin a legal tender in September and has bought 1,370 bitcoins for its treasury.
