In the past months, IMF had been suggesting that the crypto
market, which is now worth $2.4 trillion, needs to be restricted to avoid what
the agency called “cryptoization”, which is the replacement of fiat currency
with bitcoin and its other contemporaries.
According to IMF in a email seen by Ripples Nigeria, the
financial global body stated that countries are making “crypto assets such as
Bitcoin national currency.” a move it described as very risky.
While suggesting regulation of crypto assets, the statement
reads that, “Increased international regulation should not, however, undercut
the enabling environment for useful crypto-asset products and applications.”
IMF is of the opinion that stablecoins or crypto assets have
tremendous potential to make financial services more accessible and cheaper,
just like the Central Bank Digital Currency (CBDC).
“Emerging market and low-income economies especially stand
to benefit—so long as the risks are managed.” IMF wrote, but it charges
government to step up by offering a counter to crypto assets.
The body said government should create new digital money
“while preserving stability, efficiency, equality and environmental
sustainability.
It used Bahamas and Nigeria as examples of countries that
have launched government-backed digital currency to counter the rising adoption
of bitcoin and other cryptocurrencies in their country.