Friday, January 21

IMF recognizes that it is impossible to ban cryptocurrencies: “it’s useless”

At an event in India, the IMF chief economist acknowledged that banning cryptocurrencies is a futile practice, recommending instead regulating the market.

Since 2019, Gita Gopinath has served as Chief Economist for the International Monetary Fund (IMF), an authority that has closely watched the cryptocurrency market. In recent days, this association has even asked to lead efforts against the market, in a move that has drawn worldwide attention to the issue.

However, with the new positioning of Gita, countries should watch the market more carefully. China, for example, was one of the governments that banned Bitcoin and expelled companies from the country in 2021.

IMF Recognizes That Banning Cryptocurrencies Is A Useless Practice – “We Will Lose Control”

The subject of cryptocurrencies has become taboo at the IMF, the global entity responsible for promoting international monetary cooperation. When El Salvador legalized Bitcoin as legal tender, the IMF was one of the authorities to attack the country’s government and terminate a loan to the territory.

One of the hot topics at the International Monetary Fund turned out to be the banning of cryptocurrencies, a technology that has grown a lot in the last year, with the escalation of inflation in the world and greater demand for protection against national fiat currencies.

Mas para Gita Gopinath, banning cryptocurrencies is useless, especially in emerging countries, which risk losing control of the market by making this drastic move, believes the chief economist of the IMF.

At an event in which he participated in India, a country that is always considering banning cryptocurrencies, Gita urged governments to pay attention to the market and regulate it as quickly as possible. In his view, this is the only way to contain the advance of the market and control some points in it, such as companies operating in the sector.

At the event “Global recovery and policy challenges in 2022”, Gita declared that the decentralized nature of cryptocurrencies is a challenge for the creation of rules for the sector, and governments understand that it is complicated to prohibit the operation of the technology..

Regarding the difficulty of tracking cryptocurrencies, the IMF chief economist called for urgent global intervention in the market, despite considering that these digital currencies are not a global threat today. On January 22, Gita will assume the position of deputy director general of the IMF, the first woman to hold that position at the institution.

China banned it, but population continues to use

The speech by Gita Gopinath representing the IMF about the ban on cryptocurrencies is important in a year in which one of the world’s greatest powers shot down the market in its territory.

China was one of the main governments to ban cryptocurrencies, which caused problems in the price of Bitcoin and its mining. In addition, companies fled the country and many people began to have problems using the market’s platforms.

However, about six months after the incident, Bitcoin mining adapted to the ban, returning to record safety records. Bitcoin price was another point to show recovery, recording a record last November with greater demand in the market.

Finally, the Chinese population returned to using cryptocurrencies, but this time with brokers operating outside the country and decentralized market brokers, the latter which are also uncontrollable by governments, as transactions go from one portfolio to another. In other words, the chief economist of the IMF is right in saying that it is useless to ban cryptocurrencies, with a practical and recent example in the market.