The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has called for greater regulation surrounding private cryptocurrencies, citing financial stability risks.
Georgieva, who spoke during a press briefing at the G20 Meeting meetings for finance ministers and central bank governors in Bengaluru, India, 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…”.
Georgieva explained that the IMF, the Financial Stability Board (FSB), and the Bank for International Settlements (BIS) were committed to establishing a foundation for the regulation of cryptocurrencies that are not issued by governments or central banks.
“We have to differentiate between central bank digital currencies (CBDCs) that are backed by the state and stablecoins, and crypto assets that are privately issued. .
“There has to be very strong push for regulation. If regulation fails, if you’re slow to do it, then we should not take off the table banning those assets, because they may create financial stability risk,” she stressed.
She highlighted 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 She said: “2023 is a challenging year due to slowing global growth, compounded by the ongoing conflict in Ukraine.”