Emerging economies should regulate cryptocurrency instead of banning it: Gita Gopinath

New Delhi: International Monetary Fund (IMF) Chief Economist, Gita Gopinath, who met Prime Minister Narendra Modi on Wednesday, suggested that the world’s emerging economies should regulate cryptocurrency rather than ban it.

At an event organized by the National Council of Applied Economic Research (NCAER), Gopinath said, “The challenges of banning whether you can actually ban crypto are because many exchanges are offshore and they don’t follow the rules of a particular country.” are not under.”

He also advocated a global policy on digital currencies. The economist added that “no country can solve this problem on its own” because of the ease with which cross-border cryptocurrency transactions can be carried out. “There is an urgent need for a global policy on this,” she said.

In an interview to CNBC TV-18, Gopinath said that cryptocurrencies are not a “global threat for now”.

He also expressed concern over the rising Omicron cases. “It is worrying to see the high level of infection rate. The major version of Omicron is expected in the next one month. It is worrying to see the high level of infection rate. The whole world needs to get vaccinated or you will keep getting new versions of Covid-19,” she said.

India’s much-awaited bill on cryptocurrency is unlikely to be introduced in the ongoing winter session of Parliament. The bill, which was listed in the government’s legislative business, seeks to “create a facilitating framework for the creation of an official digital currency to be issued by the Reserve Bank of India”.

The bill, which seeks to ban all private cryptocurrencies in India, however, allows “certain exceptions to promote cryptocurrency and the technology underlying its use.” According to Lok Sabha website.

Gopinath will soon replace Geoffrey Okamoto, who will leave the IMF early next year. Gita Gopinath, who has served as the IMF’s chief economist for three years, was scheduled to return to her academic position at Harvard University – where she is the John Zwanstra Professor of International Studies and Economics – in January 2022.