The International Monetary Fund (IMF) has released a new report on cryptocurrencies.
In the report, titled "Crypto Use Fluctuates as Interest in Central Bank Digital Currencies Increases in Latin America and the Caribbean", issues related to cryptocurrencies in general were also mentioned.
In the report, the International Monetary Fund (IMF) states that banning crypto "may not be effective in the long run." Instead, countries should focus on addressing factors that encourage crypto use, such as unmet digital payment needs.
According to the IMF's report, Latin American and Caribbean (LAC) countries are "at the forefront of digital currency adoption"; Brazil, Argentina, Colombia and Ecuador are in Chainalysis's top 20 for global cryptoasset adoption:
“While crypto presents challenges and risks for vulnerable LAC countries, many government officials see Central Bank Digital Currencies (CBDCs) as a tool to improve payment systems and expand financial inclusion.
To mitigate risks while reaping the potential benefits of crypto, the IMF recommends maintaining monetary policy, managing capital flows, implementing prudent surveillance, and strengthening global cooperation on this issue.
Countries that ban crypto should reconsider their long-term strategy. A better approach might be to address the drivers of crypto demand and increase transparency by recording transactions in national statistics.”
*Not investment advice.
