The head of the International Monetary Fund (IMF) is calling for new rules to govern the cryptocurrency sector and protect investors.
IMF Managing Director Kristalina Georgieva said during a speech that cryptocurrencies need to be regulated because they pose risks to global financial stability.
She added that high crypto asset adoption could impact the effectiveness of monetary policy, capital flows, and fiscal sustainability without regulations in place.
“Our goal is to make a more efficient, interoperable and accessible financial system by providing rules to avoid the risks of crypto,” said Georgieva.
Rules are not meant to “return us to a pre-crypto world, nor to squash innovation,” she added.
When it comes to the development of digital money, Georgieva said that policymakers around the world could either be part of it and help to do it better or be left behind.
The latest remarks come as cryptocurrencies continue to rally into year’s end. The price of Bitcoin (BTC), the largest cryptocurrency by market capitalization, is now up 160% this year and trading at $43,170.00 U.S.
Cryptocurrency prices got a further boost on Dec. 13 when the U.S. Federal Reserve pivoted away from its monetary tightening regime and said that it now expects at least three interest rate cuts in 2024.
