Banning private cryptocurrencies should be an option: IMF chief
2 min read . Updated: 25 Feb 2023, 04:34 PM IST
PremiumIndia's G20 presidency has come at a time when neighboring South Asian countries Sri Lanka, Bangladesh and Pakistan are seeking urgent IMF funds due to economic slowdown
Banning private cryptocurrencies should be an option, said IMF Managing Director Kristalina Georgieva on Saturday, on the sidelines of a G20 meeting. IMF chief added that there are some disagreements among nations over restructuring debt for distressed economies.
IMF chief said that there has to be a 'strong push for regulations’ for cryptocurrency, reported Reuters.
"We have to differentiate between central bank digital currencies that are backed by the state and stable coins, and crypto assets that are privately issued," said IMF chief Georgieva.
"There has to be very strong push for regulation...if regulation fails, if you're slow to do it, then we should not take off the table banning those assets, because they may create financial stability risk," added Georgieva.
India's G20 presidency has come at a time when neighboring South Asian countries Sri Lanka, Bangladesh and Pakistan are seeking urgent IMF funds due to economic slowdown caused by the Covid-19 pandemic and the Russia-Ukraine war.
China, world's largest bilateral creditor, urged G20 nations on Friday to conduct a fair, objective and in-depth analysis of the causes of global debt issues. This is because there has been a call for lenders to take a large haircut, or accept losses, on loans.
"On debt restructuring, while there are still some disagreements, we now have the global sovereign debt roundtable with consideration of all public and private creditors," said IMF Managing Director Kristalina Georgieva after the roundtable she co-chaired with Indian Finance Minister Nirmala Sitharaman.
“We just finished a session in which it was clear that there is a commitment to bridge differences for the benefit of countries," she added.
IMF MD Kristalina Georgieva had earlier said that the Indian economy will alone contribute 15 per cent of the global growth this year, as the country continues to remain a relative "bright spot" in the world economy.
In an interview with news agency PTI, the IMF MD said that India's performance has been quite impressive. For this year, the IMF expects India to retain a high growth rate, 6.8 per cent for the year that ends in March.
Pakistan Prime Minister Shehbaz Sharif on Friday said that the crisis-hit country has to ‘unwillingly’ accept the strict conditions of the IMF deal to provide a lifeline for an economy in turmoil.
Pakistani authorities have been negotiating with the International Monetary Fund (IMF) since early February over the policy framework and are hoping to sign a staff-level agreement that will pave the way for more inflows from other bilateral and multilateral lenders.
Once the deal is signed, the lender will disburse a tranche of more than $1 billion from the $6.5 billion bailout agreed to in 2019 to Pakistan.
(Eith input from agencies)