Kristalina Georgieva, the head of the International Monetary Fund (IMF), emphasized the need to regulate cryptocurrencies due to their potential risks to financial stability during a digital currencies conference in Seoul. She highlighted concerns about the widespread adoption of crypto assets, stating that such adoption could destabilize monetary policies, affect capital flow management, and cause tax collection volatility, impacting fiscal sustainability.
Georgieva, speaking alongside the South Korean government and central bank, advocated for regulations aimed at creating a more efficient, interconnected, and accessible financial system while mitigating the risks associated with cryptocurrencies. She clarified that the intention behind these rules isn’t to stifle innovation but to foster a framework that encourages and directs innovative advancements.
In a panel discussion regarding digital money development, Georgieva stressed that policymakers have a choice: to actively engage and contribute to its development or risk being excluded, as progress in this field is inevitable. She highlighted the importance of learning from each other, expressing particular interest in insights from emerging markets like India, citing their digital public infrastructure as a noteworthy case. Additionally, she acknowledged the value of understanding the history of money from the perspective of advanced economies.
