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A September report by two senior executives in the IMF recommends that crypto be regulated with consistency across global borders. Is the IMF fit to coordinate regulation?
The International Monetary Fund is attempting to spread its tentacles far and wide in order to try and get some kind of global consensus on how to regulate the cryptocurrency sector.
A September report was written by Aditya Narain, Deputy Director of the IMF Monetary and Capital Markets Department, and Marina Moretti, Assistant Director of the same department.
The report was entitled: Regulating Crypto - The right rules could provide a safe space for innovation, and it starts off by acknowledging the huge challenges faced by regulators.
It cites how the world of crypto is “evolving rapidly”, and that regulators are struggling to develop skills and to keep pace with new developments, under the restraints of stretched resources.
The authors state that even down to the basics of terminology there are no global agreements, and they highlight that the use of just one crypto asset can attract the different regulatory authorities for banks, commodities, securities payments and others.
Also, within the crypto ecosystem there are a range of actors such as miners, validators, and developers, who are extremely difficult to keep a handle on under traditional financial regulations.
The report really starts to get to the point when it explains how there is much pressure on regulators to act, and that crypto is being integrated into the traditional financial system. The authors state:
“It is posing another conundrum for public policy, too. How closely can the two systems be integrated before there is a call for the same central bank facilities and safety nets in the crypto world?”
The main worry according to the authors is that as more time passes and crypto continues to innovate at a fast pace, more pressure will be put onto individual jurisdictions to set regulations that will vary across borders.
For these reasons, the IMF is calling for a coordinated and consistent global response.
Opinion
In the international best-selling book “Confessions of an Economic Hit Man”, the author John Perkins, explains how he helped the IMF to get underdeveloped countries to accept loans for infrastructure developments that were contracted out to multinational corporations.
The huge debt that they took on then enslaved them to the U.S. government which was then able to control their economies.
The IMF has an agenda that does not include propagating the use of cryptocurrencies. It is very much a tool of the West with which to subjugate developing countries, and has the main aim of spreading use of the dollar across the world.
All the talk of regulatory agencies not being able to keep up with the pace of development in crypto is no doubt true. However, seeking to clog the crypto ecosystem with badly fitting regulations thought up by those entrenched in the legacy financial system is not a good way to go.
Financial infrastructure in crypto is moving fast. Ponderous banks and regulators lacking the necessary deep knowledge should not be put in its way. The winds of change are blowing, and like it or not, private digital assets that can be held completely by private individuals without any third parties involved will revolutionise finance like never before.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.