IMF Director Stresses Digitalization's Role in Financial Inclusion, Calls for Crypto Oversight
Summary:
During the International Monetary Fund's seminar, its Managing Director, Kristalina Georgieva, emphasized the importance of digitalization in financial inclusion, citing the example of digital transfers in Togo during the COVID-19 pandemic. Georgieva called for comprehensive national strategies for financial inclusion, warning about the risks associated with digitalization. Recent IMF activities include proposing a crypto-risk assessment matrix and a Synthesis paper advocating extensive oversight over crypto instead of a full ban, with recommendations for international cooperation among regulators and efficient risk management for crypto companies.
In her inaugural address at the worldwide financial inclusion seminar held by the International Monetary Fund (IMF) in Marrakesh, Morocco, Kristalina Georgieva, the Managing Director of IMF, advocated that digitalization serves as the principal method to broaden financial inclusion. "Digital technology is the key for quicker economic development, increasing investments, and extending support to the masses," remarked Georgieva, citing the example of digital money transactions in Togo, an African nation, instituted throughout the COVID-19 outbreak. While calling for encompassing national strategies for financial inclusion, she cautioned listeners about the associated hazards to financial stability frequently linked with digitalization.
Related: Retail CBDCs could cause unforeseen 'impacts' to the financial system, warns IMF director.
The IMF has been egenergized of late in scrutinizing the required regulations for crypto. On the 29th of September, they suggested a crypto-risk evaluation matrix (C-RAM) enabling countries to recognize warnings and triggers of possible dangers in the sector. The Synthesis paper of the IMF, written in partnership with the Bank for International Settlements (BIS), was accepted unanimously by the "G20 Finance Ministers and Central Bank Governors Communique" in October. The paper suggests comprehensive supervision of crypto instead of completely prohibiting it. The key recommendations encompass international collaboration and data exchange among regulators, a call for all-inclusive governance and risk management schemes for crypto firms, and promising firms provide pertinent data to the authorities. Magazine: Future of crypto. Zero-knowledge verifications indicate potential from voting to finance.
Published At
10/18/2023 9:38:01 AM
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