Tag: International Monetary Fund

G20 Announces Standards for Global Crypto Regulation

by Blockchain News

The Financial Stability Board (FSB), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS) have been tasked with establishing standards for a global cryptocurrency regulatory framework, according to an announcement by the Group of 20 (G20) on February 25th, 2023. The G20, comprised of the world’s 20 largest economies, has recognized the need for a coordinated international effort to address the risks associated with cryptocurrencies and establish clear regulatory guidelines for their use.

The announcement comes in response to the rapid growth of cryptocurrencies and their increasing use in global financial transactions. The FSB, IMF, and BIS will deliver papers and recommendations on the regulation, supervision, and oversight of stablecoins, crypto asset activities, and markets by July of this year. The recommendations are expected to establish clear guidelines for the use of cryptocurrencies and help prevent their misuse for criminal activities, such as money laundering and terrorist financing.

The G20 has also recognized the potential benefits of cryptocurrencies and the underlying blockchain technology. The use of cryptocurrencies could offer advantages such as increased efficiency, faster and cheaper transactions, and greater financial inclusion, particularly for the unbanked population. However, the G20 also acknowledges the risks associated with cryptocurrencies, including volatility, market manipulation, and cyber threats.

The regulatory framework is expected to strike a balance between the risks and benefits of cryptocurrencies, ensuring their safe and responsible use. The recommendations are likely to address issues such as licensing requirements, anti-money laundering and counter-terrorism financing (AML/CFT) measures, consumer protection, and market integrity. The G20 recognizes the need for a coordinated international effort to establish these standards and promote global financial stability.

In conclusion, the G20’s announcement marks a significant step towards establishing a global regulatory framework for cryptocurrencies. The recommendations from the FSB, IMF, and BIS will provide clear guidelines for the use of cryptocurrencies, ensuring their safe and responsible use while promoting financial stability. As cryptocurrencies continue to gain in popularity, it is essential to establish clear regulatory guidelines to prevent their misuse and ensure their potential benefits are fully realized.

Source

Tagged : / / / / /

El Salvador’s President Responds to IMF After the Institution Advises Country To Drop Bitcoin As Legal Tender

by Dailyhodl

President Nayib Bukele is responding to the International Monetary Fund’s (IMF) warning that El Salvador should remove the legal tender status of Bitcoin (BTC) with a meme.

Back in September of last year, El Salvador became the world’s first nation to recognize Bitcoin (BTC) as an official currency.

The leading crypto asset has since gone on a roller coaster of price swings, climbing to an all-time high above $69,000 in November before a series of steep declines took it below $40,000 this month.

Now the IMF, after its annual bilateral meeting with Salvadoran officials, recommends that Bitcoin’s legal tender status be rescinded.

“There are large risks associated with the use of Bitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities.

Some directors also expressed concern over the risks associated with issuing Bitcoin-backed bonds.”

President Bukele then took to Twitter to post an animated meme from the popular TV show The Simspons, where the character Homer Simpson performs a walking handstand while two other characters are speaking.

One of them shoos him away and responds dismissively,

“I see you, IMF. That’s very nice.”

Bukele routinely updates his followers when El Salvador buys Bitcoin, recently informing the world that he’d just scooped up over 400 BTC.

“El Salvador just bought 410 Bitcoin for only 15 million dollars.

Some guys are selling really cheap.”

The big buy follows several other purchases after Bitcoin’s price fell, including 100 BTC in November, 420 BTC in October, and 150 BTC in September.

At time of writing, Bitcoin is trading sideways on the day and priced at $37,428.

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

 

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/grafius/PurpleRender

Source

Tagged : / / / / / / / / /

Institutional Investors Are Increasing Exposure to Crypto, According to deVere Group CEO Nigel Green – Here’s Why

by Dailyhodl

The CEO of financial services firm deVere Group, Nigel Green believes that the future of money is “digital” and recognizes Bitcoin (BTC) as the world’s largest digital currency.

Green says that institutional investors are consequently allocating more of their resources to Bitcoin and other crypto assets.

“This is why more and more institutional investors, household name investors, Wall Street giants and multinational corporations are all sensibly, increasing their exposure to crypto and bringing with them capital, reputational clout and expertise.

They understand and value the key characteristics of Bitcoin and cryptocurrencies are designed for this century and, therefore, are growing in appeal.”

According to Green, the qualities that make Bitcoin and other crypto assets appealing include the fact that they are unencumbered by geographical restrictions.

“These include that they’re borderless, making them perfectly suited to a globalized world of commerce, trade, and people; that they are digital, making them an ideal match to the increasing digitalization of our world; and that demographics are on the side of cryptocurrencies as younger people are more likely to embrace them than older generations.”

The deVere Group CEO also says that the International Monetary Fund (IMF) is on the “wrong side of history” after the global body earlier this week asked El Salvador to revoke Bitcoin’s legal tender status.

“But the IMF asking a pioneering sovereign nation to drop a future-focused financial policy that attempts to bring it out of financial instability and reliance on another country’s currency shows the institution to be on the wrong side of history.

Is the IMF scared of the future of finance? Why do they continue to want to pile on debts to poorer countries that they know are unlikely to be able to repay using traditional currencies? Is the IMF worried about the domino effect of nation-state adoption that might weaken their dominant global influence? If so, is this a warning shot to those countries?”

El Salvador officially adopted Bitcoin as a legal tender in September of 2021.

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

 

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/mim.girl/artjazz

Source

Tagged : / / / / / / /

IMF Calls for Comprehensive Global Crypto Regulations, Says Digital Assets Could Threaten Financial Stability in Some Countries

by Dailyhodl

The International Monetary Fund (IMF) is calling for sweeping and synchronized crypto regulations across the globe.

In a new blog post, IMF officials warn that the nearly $2.5 trillion crypto market is becoming more interlinked with the traditional financial system and could pose systemic financial stability risks in certain countries.

“Some emerging markets and developing economies face more immediate and acute risks of currency substitution through crypto assets, the so-called cryptoization.

Capital flow management measures will need to be fine-tuned in the face of cryptoization.”

The IMF officials also says that the crypto market’s cross-border nature makes uncoordinated nationalized regulations ineffective.

“Uncoordinated regulatory measures may facilitate potentially destabilizing capital flows.”

Image
Source: IMF

The officials argue that crypto asset service providers need to be licensed and that regulatory requirements should be tailored to the different use cases of crypto projects.

“For example, services and products for investments should have requirements similar to those of securities brokers and dealers, overseen by the securities regulator.

Services and products for payments should have requirements similar to those of bank deposits, overseen by the central bank or the payments oversight authority.”

The IMF also calls for clear requirements for regulated financial institutions that put limits on exposure to crypto assets.

The IMF has previously published blog posts arguing that crypto poses risks to consumer protection and the banking sector.

Read the IMF’s full blog post here.

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

 

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/klyaksun/Andy Chipus

Source

Tagged : / / / /

IMF Report On El Salvador Is Positive… Except For Everything Bitcoin-Related

by NEWSBTC

In a recent report, the IMF praises the way El Salvador handled the COVID-19 situation and announces their economy grew 10% in 2021. The International Monetary Fund also recognizes El Salvador’s government efforts to reduce crime, “diversify the energy matrix, foster economic diversification, and enhance financial inclusion.” However, when it comes to Bitcoin, the IMF is completely against it. As they should. Because Bitcoin renders them irrelevant.

But first, about the report titled “El Salvador: Staff Concluding Statement of the 2021 Article IV Mission”

“A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement.”

Anyway, let’s go to the IMF’s wacky opinions about Bitcoin.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

BTCUSD price chart for 11/23/2021 - TradingView

BTC price chart for 11/23/2021 on Oanda | Source: BTC/USD on TradingView.com

What Does The IMF Think About Bitcoin As Legal Tender?

After praising El Salvador’s efforts to foster “financial inclusion and raise growth,” the IMF attacks the very tool that the country’s government is using to accomplish that.

“Given Bitcoin’s high price volatility, its use as a legal tender entails significant risks to consumer protection, financial integrity, and financial stability. Its use also gives rise to fiscal contingent liabilities. Because of those risks, Bitcoin should not be used as a legal tender. Staff recommends narrowing the scope of the Bitcoin law and urges strengthening the regulation and supervision of the new payment ecosystem.”

Translation: The IMF can’t even think of one good reason for Bitcoin not to be legal tender. One Bitcoin is one Bitcoin. The cryptocurrency’s volatility is intrinsically related to the assets we compare it with. In this case, the US Dollar. It’s also important to remember that Bitcoin is legal tender in El Salvador ALONGSIDE the US Dollar. If people don’t want volatility, they can easily exchange all of their money into US Dollars. 

Get 110 USDT Futures Bonus for FREE!

The IMF also conveniently ignores the fact that Bitcoin’s volatility can bring positive results for its users. And that their other option, the US Dollar, is going through an inflationary period like no other. Plus, when the US government prints more money, its citizens get certain benefits out of it. But El Salvador doesn’t. A Dollarized country that’s not in control of the money printer gets its purchasing power decreased by relentless inflation, but doesn’t get the airdrops and inorganic money artificially stimulating the economy.

Does The IMF Have Any Other Advice?

Of course, they do. After praising financial inclusion, the IMF recommends implementing the exact same measures that keep 70% of El Salvador’s population out of the financial system.

“Stronger regulation and oversight of the new payment ecosystem should be immediately implemented for consumer protection, anti-money laundering and counter financing of terrorism (AML/CFT), and risk management.”

Why are people in El Salvador unbanked? Do they think it’s by choice? Is the IMF unaware that their outdated and inefficient methods are causing the bottleneck? Bad actors have incentives to bypass AML and KYC procedures. They do it with ease. Normal people can’t produce all those documents. And for banks, the cost of processing all that data makes acquiring a new client expensive. There are no incentives to serve the lower-income population.

“Recently announced plans to use the proceeds of new sovereign bond issuances to invest in Bitcoin, and the implications of trading more broadly in Bitcoin, will require a very careful analysis of implications for, and potential risks to, financial stability.”

Translation: What’s all this about a Bitcoin City?!!!!! And they’re building a pet hospital?! ALERT! ALERT!

The US Pauses Relations With El Salvador

In semi-related news, Reuters informs that U.S. Chargé d’Affaires Jean Manes said in local TV that relationships between the two countries are on hold. “Obviously we’re on a bit of a pause because the government of El Salvador is not giving a signal that it has an interest in our relationship,” she said. “On behalf of the White House, the State Department, we’ve offered a bridge, and the (Salvadoran) government decided not to take it. As far as we’re concerned, we’re interested in having the best relationship with El Salvador.”

Sure, Manes. That sounds totally believable. Nothing suspicious here.

Featured Image: AbsolutVision on Pixabay | Charts by TradingView

Source

Tagged : / / / / / / / / / / / / / / / /

G7 Set to Release the Guidelines for the Creation of CBDCs

by Blockchain News

The Group of Seven (G7) industrialized nations are looking forward to accepting the proposals of a draft which seeks to enshrine some set of standards in the creation and issuance of Central Bank Digital Currencies (CBDCs).

According to the Japan Times, neither of the members of the G7 including the US, Italy, Japan, Canada, Britain, France, and Germany have confirmed they will be implementing a CBDC, and the draft contains as many as 13 recommendations.

The G7, according to the report understands that the decision to develop a CBDC is a sovereign matter, however, it noted that “by setting out a common set of principles, and underscoring the fundamental importance of shared values such as transparency, rule of law and sound economic governance, these principles can guide and inform exploration of retail CBDC in the G-7 and beyond.”

Amongst the issues, the draft proposal will seek to address the development of national and regulatory policies for the proposed digital money. Accountability standards and privacy must also be important factors that should be considered by countries looking to implement a CBDC.

The G7 will also aim at pushing countries with CBDC agenda to consider robust safeguards that can protect currency substitution with other countries.

“Where overseas access to a jurisdiction’s CBDC could leave other countries vulnerable to currency substitution or other spillovers, collaborative work to design and implement safeguards, particularly through relevant international organizations, can help mitigate negative effects,” it said.

As reported by Blockchain.News on October 6, the International Monetary Fund (IMF) president Kristalina Georgieva has recently said that about 110 countries have CBDC development at some stage.

While the G7 is a fraction of these numbers, they notably have such influence that can make the difference is passed off by the members when the Finance Chiefs of this body meet on Wednesday.

Above all, the draft recommendation will also seek to foster currency interoperability, albeit, with standards that can help prevent financial frauds, and the risks of evading sanctions.

Image source: Shutterstock

Source

Tagged : / / /
Bitcoin (BTC) $ 43,892.76 0.26%
Ethereum (ETH) $ 2,364.15 0.37%
Litecoin (LTC) $ 78.05 1.55%
Bitcoin Cash (BCH) $ 251.50 1.72%