• The International Monetary Fund (IMF) has released a board paper providing guidance on how countries should draft appropriate policies in relation to cryptocurrencies.
• The policy advisory document, known as “Elements of Effective Policies for Crypto Assets”, addresses the inquiries of IMF member states on the benefits and risks of cryptocurrencies.
• Through this policy advisory document, the global lender of last resort lays out a nine-point agenda that they claim will help all nations create a “comprehensive, consistent, and coordinated policy response” to the rising use of crypto assets.
International Monetary Fund Releases Board Paper
The International Monetary Fund (IMF) has released a board paper that provides guidance on how countries should draft appropriate policies in relation to cryptocurrencies. According to a press release on Thursday, Feb. 23, the IMF says this policy advisory document, known as “Elements of Effective Policies for Crypto Assets,” addresses the inquiries of IMF member states on the benefits and risks of cryptocurrencies while including macro-financial considerations such as the effects of these digital assets adoptions on monetary and fiscal policies.
Nine Point Agenda
Through this policy advisory document, the global lender of last resort lays out a nine-point agenda that they claim will help all nations create a “comprehensive, consistent, and coordinated policy response” to the rising use of crypto assets. Deliberating on the board paper, the IMF executive board noted the timeliness and importance of this document to its member states considering various factors such as the growing adoption of cryptocurrency, its extraterritorial nature and that of its developers, and its increasing integrations with the global financial system.
Risks Presented By Cryptocurrencies
The 24-man body also commented on some risks presented by cryptocurrencies including their potential to sabotage effectivenesss of monetary policy or bypass capital flow management systemsand aggravate fiscal risks. Other concerns included their financial stability; financial integrity; legal risks; consumer protection; and market integrity..
Board Approves Paper On Proposed Crypto Regulations
That said , overall , they stated their support for th eboard pap erand all itssuggested measures aimed at helping members set up effective regulations towards crypto assets .
Conclusion
The IMF’s goal is to assist countries in setting up appropriate regulatory frameworks for digital currencies which will help protect consumers while ensuring proper functioning markets worldwide