wordpress blog stats
Connect with us

Hi, what are you looking for?

When it comes to crypto assets as currency, risks outweigh benefits: IMF warns

The IMF warned that adopting crypto assets as legal tender carries risks for the country’s macroeconomy, among others.

“When it comes to adopting crypto assets as national currencies, risks and costs outweigh potential benefits,” the International Monetary Fund (IMF) wrote in a post recently. Terming crypto assets as an “inadvisable shortcut”, the post added that the risks come in the form of “macro-financial stability, financial integrity, consumer protection, and the environment”.  The financial institution, however, advised that countries should not ignore the advantages of blockchain technology, and instead “leverage new digital forms of money while preserving stability, efficiency, equality, and environmental sustainability”. Cryptocurrencies and the blockchain technology powering them have witnessed an accelerated rate of adoption in the last few years. The excitement around cryptocurrencies stems from the fact that they hold the potential to streamline payments, promote financial inclusion, and improve cross-border transfers as per IMF. On the other hand, it must be noted that the ecosystem is in its infancy and is speculated to be volatile. There is also uncertainty on how to regulate these forms of digital currencies.  Read: A complete low-down on cryptocurrency regulation in India Key takeaways from IMF’s blog Crypto assets as legal tender Many countries were considering granting “cryptoassets legal tender status, and make them a second national currency”. Countries may pass laws to encourage the use of cryptoassets as national currency and a mandatory means of payment for everyday purchases. The move has to be backed by creditors in payment of monetary obligations, including taxes, which is akin to notes and coins issued by a central bank. Legal tender status might…

Please subscribe/login to read the full story.
Written By

I cover several beats such as Crypto, Telecom, and OTT at MediaNama. I can be found loitering at my local theatre when I am off work consuming movies by the dozen.

Free Reads

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The existing commission-based model, which companies like Uber and Ola have used for a long time and still stick to, has received criticism from...

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

News

RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.

News

Both the IT Minister and the IT Minister of State have chosen to avoid the actual concerns raised, and have instead defended against lesser...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ