Cryptos Are a Challenge for Emerging Markets, IMF Chief Economist Says

The issue of cryptocurrency regulation and the assertion that it is posing a challenge for emerging markets has become a topic of discussion for most world powers, governments, and organizations. The International Monetary Fund (IMF) Chief Economist Gita Gopinath holds the same opinion about crypto.

She made her stand known at the National Council of Applied Economic Research (NCAER). She claims that cryptocurrencies are a challenge for emerging markets. She continues to say that it may seem as though cryptos are more attractive for emerging markets compared to developed economies.

However, she explains that people should know that emerging markets have exchange rate controls, capital flow controls, and cryptos can impact them.

I think cryptocurrencies are a particular challenge for emerging markets. It would seem that cryptocurrencies are more attractive for emerging markets compared to developed economies. However, emerging markets have exchange rate controls, capital flow controls, and cryptocurrencies can impact that

The Chief Economist who is slated to be the First Deputy Managing Director of the IMF early next year believes crypto needs regulation since banning it would pose practical challenges. According to her, if people are using crypto as an investment asset, then the same rules that apply to other investments should also apply to it.

Gopinath’s statement comes on the heels of the hastened tension in India due to the Union Cabinet’s failure to take up the regulatory bill for consideration this week.  Since the Winter Session is coming to an end on December 23, the chances of it being tabled by the Parliament is relatively low.