By Shelly Melancon (Switzerland)
The cryptocurrency industry has gained the attention of governments and international bodies. Despite many differing opinions, there is no doubt that cryptocurrency is one of the most critical topics in the world. While many support and work towards global crypto adoption, others have not bought the idea and believe it should be banned.
Despite the fact that some countries have banned cryptocurrency, no international financial institution has. And, according to Gita Gopinath, a top International Monetary Fund (IMF) executive, it is unlikely that any will. According to Gopinath, even if the IMF is interested in outlawing cryptocurrency, the technology’s very nature makes it nearly impossible to deny.
Gopinath mentioned the ripple effects of decentralization, which is one of cryptocurrency’s most important and exciting features. Gopinath made the remarks during a lecture hosted by the National Council for Applied Economic Research (NCAER) in Delhi, India, on Wednesday.
Why Crypto Ban May Not Work
According to Gopinath, the IMF could not afford to ban it due to certain challenges posed by cryptocurrency decentralization. Other reasons, according to Gopinath, include rate of exchange and capital regulations. She stated that the IMF and governments must work together to regulate cryptocurrency and make it safe for consumers and creators.
Gopinath also stated that it would be difficult to regulate cryptocurrencies because the majority of cryptocurrency exchanges are registered and licensed in foreign jurisdictions. She urged urgent global efforts to address cryptocurrency, arguing that the world cannot leave regulation to individual countries.
AS a top IMF executive, Gopinath is familiar with the impact of cryptocurrency on traditional financial systems and will be looking. The lecture in Delhi comes at a significant time when her native India is going through a phase that will determine the future of cryptocurrency in the country. India has been in the news over a possible cryptocurrency regulatory framework.
Will India Ban Cryptocurrencies?
Despite its frown on cryptocurrency, the Indian government has not banned it since a High Court upturned its 2018 ban in 2020. But the last six weeks have been intense for India’s crypto community and lawmakers. The Indian Parliament has held a hearing over cryptocurrency, inviting academics and crypto executives.
Parliament is also expected to form and pass a Crypto Bill to impose strict regulations on cryptocurrency within India. The Crypto Bill reportedly contains proposals that will limit the type of investors and the number of investments made in cryptocurrencies. The Crypto Bill will also ban all “private” cryptocurrencies in India.
The Indian government has stated that it won’t ban cryptocurrency. However, it has shown a strong desire to regulate it. Parliament appears to be taking its time to deliberate on the effects and alternatives of the proposed crypto bill. The Crypto Bill has been before the Parliament for weeks now as it meets for its “Winter Session,” which ends in a week.
Some countries are also going to regulate cryptocurrency. The U.S. Parliament held a hearing on cryptocurrency in November. The US Parliament will present recommendations and possible regulatory frameworks.
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