IMF Chief Economist Says ‘Regulation Is Absolutely Important’ for Crypto Sector – Regulation Bitcoin News

The chief economist at the International Monetary Fund (IMF) says that regulation is “absolutely important” for the crypto sector. Her comments were accompanied by the observation that bans on crypto currencies, as India may be contemplating, would present practical problems due to their decentralized nature.

IMF’s Chief Economist on Cryptocurrency and Its Regulation

Gita Gopinath, chief economist at the International Monetary Fund (IMF), reportedly spoke out about cryptocurrency Wednesday during an event hosted by National Council of Applied Economic Research.

Gopinath is also the IMF’s economic counselor and director of its research department. She is on leave of public service from Harvard University’s economics department where she is the John Zwaanstra professor of international studies and of economics. Gopinath, who is expected to become the IMF’s second deputy managing director by the end of this year.

She stated:

It appears that cryptocurrencies seem to be more popular for emerging markets than they are for the developed world.

Noting that “cryptocurrencies are a particular challenge for emerging markets,” she further opined, “emerging markets have exchange rate controls, capital flow controls, and cryptocurrencies can impact that.”

Gopinath said:

This sector needs regulation. This sector should be regulated if it is used as an investment asset.

Her comments were accompanied by the observation that bans on cryptocurrency would be difficult to implement due to their centralization. This highlights the importance of a worldwide policy regarding cryptocurrency.

The IMF made some suggestions last week on how cryptocurrency should regulate. It noted that it is urgent for international collaboration and cooperation in cryptocurrency regulation. The authors said, “Crypto assets are potentially changing the international monetary and financial system in profound ways.”

El Salvador was also warned by the IMF in November not to use bitcoin as a currency. In September, the country declared bitcoin legal tender along with the U.S. dollars and purchased 1,370 bitcoins to fund its treasury.

What do you think about the IMF chief economist’s comments? Please leave your comments below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.

Images CreditsShutterstock. Pixabay. Wiki Commons

DisclaimerThis article serves informational purposes. It does not constitute an offer, solicitation, or recommendation of any company, products or services. is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.

Get more Crypto News at CFX Magazine