IMF Managing Director Kristalina Georgieva stressed the pivotal role of digitalization in expanding financial inclusion during her keynote address at the International Monetary Fund’s financial inclusion seminar in Marrakesh.
She asserted that digitalization is “the most important way” to make financial services more accessible to a broader population. Georgieva cited the example of digital cash transfers implemented in Togo during the COVID-19 pandemic to illustrate the positive impact of digital solutions. However, she also cautioned about the financial stability risks often associated with digitalization.
In response to the evolving landscape of digital currencies, the IMF has been actively engaged in analyzing the regulatory requirements for cryptocurrencies. In late September, the organization introduced a crypto-risk assessment matrix (C-RAM) designed to assist countries in identifying potential risks within the cryptocurrency sector.
Moreover, the IMF collaborated with the Bank for International Settlements (BIS) to develop a Synthesis paper, which received unanimous adoption in the “G20 Finance Ministers and Central Bank Governors Communique” in October.
The Synthesis paper advocates for a comprehensive approach to crypto oversight instead of imposing a blanket ban on cryptocurrencies. It emphasizes the importance of cross-border cooperation and information sharing among regulators. The paper also underscores the necessity for robust governance and risk management frameworks for cryptocurrency companies.
Additionally, it calls for ensuring regulatory authorities have access to relevant data provided by crypto firms, enhancing transparency and regulatory effectiveness in the cryptocurrency industry.