The IMF has called for the world governments to sit together and form a coordinated policy towards cryptocurrencies. IMF is of the belief that decentralization and crypto adoption is on the rise as many more people and states are adopting digital assets into their financial framework; this calls for a corresponding policy response. Another reason to do so is the growing risks that are associated with cryptocurrencies and their unscreened interaction which states, countries and people.
Cryptocurrencies, without any doubt, are volatile assets; these don’t promise handsome returns on investment as much as stocks or forex investments do. That is a hard known fact every institutional investor out there knows, and still, some of them are willing to roll the dice on crypto investments. But according to IMF and other well-established monetary associations around the world, these types of risks are not normal, and this calls for a more mature front to be formed in the form of a coordinated global policy towards the use, adoption, or interaction with cryptocurrencies.
The main motive of IMF is that cryptocurrencies and decentralization shouldn’t be allowed to run free on the streets without any proper framework delegating its course. Now they are not asking to make or embed centralization onto the cryptocurrencies and to record every move, but there should at least be a noble framework using which their performance and moreover the impact that these are having on people and countries that are in close interaction with them could be effectively monitored.
In simpler words, IMF wants cryptocurrencies on the radar around the clock because if left unchecked, cryptocurrencies could overthrow the conventional financial systems in place that are some of the most robust monetary systems on the globe and even these work and operate under a proper framework and are not allowed to run freely in whatever direction or at whatever speed they want to. There should be a check and balance system in place for cryptocurrencies, and all the nations of the world should back this idea by developing a coordinated policy.