New Delhi: International Monetary Fund (IMF) Chief Economist Gita gopinath said on Wednesday that cryptocurrencies pose a challenge to emerging economies, which have control over capital flows and foreign exchange, and called for a coordinated global action to regulate them, while suggesting that sanctions could be tougher. .
Calling on countries to move quickly, Gopinath – the IMF’s first deputy managing director-designate – said sanctions could be difficult to impose from a practical standpoint. “A lot of exchanges are offshore and not subject to regulation (of a country), he said in a lecture organized by think-tank National Council for Applied Economic Research (NCAER).
She said there was a need to regulate crypto assets and based on the stance taken by each country, rules should be developed that govern the investments or financial institutions investing in payments and instruments with capital buffers. apply for other criteria.
The government is working on a law on cryptocurrencies, which was to be introduced during the current session Parliament, The debate over whether to regulate or ban it has divided the government. reserve Bank of India Arguments against treating it as property. Gopinath pointed to greater adoption of cryptocurrencies in emerging markets.
Pointing to the global economic recovery since the COVID pandemic, he said the pace of growth has hit during the second half of 2021.
Gopinath said the Indian government should maintain a liberal fiscal stance for a few more quarters and open it up gradually. He was also of the view that monetary policy should remain liberal, although like other central banks, the RBI needed to keep a close watch on inflation.
Harvard University The professor suggested that many countries, including India, are witnessing a K-shaped recovery, indicating that different segments of the economy are recovering at different speeds and that large companies are expected to turn around more rapidly than SMEs. And many people have yet to come back. Market.
In the midst of a growing challenge from inflation, with monetary policy tightening in advanced countries as well as withdrawal of fiscal stimulus in many countries, Gopinath suggested that central banks in their communications in case of a change in monetary policy stance needs to be clear. It also warned of the limited financial space available to countries to deal with potential disruptions due to a spike in infections.
Gopinath called for a focus on building infrastructure, especially related to health, and said that developing countries need to redouble efforts on education as children in these countries have been affected by the shift to virtual classrooms. .
Calling on countries to move quickly, Gopinath – the IMF’s first deputy managing director-designate – said sanctions could be difficult to impose from a practical standpoint. “A lot of exchanges are offshore and not subject to regulation (of a country), he said in a lecture organized by think-tank National Council for Applied Economic Research (NCAER).
She said there was a need to regulate crypto assets and based on the stance taken by each country, rules should be developed that govern the investments or financial institutions investing in payments and instruments with capital buffers. apply for other criteria.
The government is working on a law on cryptocurrencies, which was to be introduced during the current session Parliament, The debate over whether to regulate or ban it has divided the government. reserve Bank of India Arguments against treating it as property. Gopinath pointed to greater adoption of cryptocurrencies in emerging markets.
Pointing to the global economic recovery since the COVID pandemic, he said the pace of growth has hit during the second half of 2021.
Gopinath said the Indian government should maintain a liberal fiscal stance for a few more quarters and open it up gradually. He was also of the view that monetary policy should remain liberal, although like other central banks, the RBI needed to keep a close watch on inflation.
Harvard University The professor suggested that many countries, including India, are witnessing a K-shaped recovery, indicating that different segments of the economy are recovering at different speeds and that large companies are expected to turn around more rapidly than SMEs. And many people have yet to come back. Market.
In the midst of a growing challenge from inflation, with monetary policy tightening in advanced countries as well as withdrawal of fiscal stimulus in many countries, Gopinath suggested that central banks in their communications in case of a change in monetary policy stance needs to be clear. It also warned of the limited financial space available to countries to deal with potential disruptions due to a spike in infections.
Gopinath called for a focus on building infrastructure, especially related to health, and said that developing countries need to redouble efforts on education as children in these countries have been affected by the shift to virtual classrooms. .
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