Gita Gopinath explains why banning Crypto is not a good option was struggling economies

Last updated on December 23rd, 2021 at 12:54 pm

International Monetary Fund chief Gita Gopinath on Thursday said that countries which are trying their hands on crypto may get benefited with it if they start to regulate it in a better way rather than thinking about completely banning it.

The economist will soon be taking charge as the first deputy managing director of the IMF and amid the growing discussions about crypto, she said that there is an immediate need for a global policy on cryptocurrency as the demand for virtual assets is increasing every passing day.

She said this while giving a lecture on ‘Global Recovery and Policy Challenges in 2022’ organised by the ‘Global Recovery and Policy Challenges in 2022’. She also asserted that this is not a problem that any country can deal with on an individual basis as crypto involves an extremely complicated procedure.

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“Regulating crypto assets and currencies is essential, especially for emerging and developing economies, as banning them may not work as crypto exchanges are located offshore, which makes it easier for an individual to trade in them despite the ban,” said the 50-year-old economist.

Having said that, she also mentioned the risks that come with the adoption of crypto assets as they have a lot of challenges surrounding them. Nations need to develop policies and come up with fresh regulations around foreign transactions.

Even in context to India, these remarks can be considered highly by the government as they are planning to come up with a cryptocurrency bill and are waiting for the cabinet’s approval for it. The official Cryptocurrency and Regulation of Official Digital Currency Bill was reported to be introduced during the start of the Winter Session but considering other pressing issues, the bill has been delayed.