IMF Urges Crypto Regulation, Cautions Against Bans

The IMF has restated its call for crypto regulation while discouraging outright bans. In a report on Latin America and the Caribbean, the IMF highlighted the approaches taken by governments in the region regarding cryptocurrencies and CBDCs. El Salvador accepting Bitcoin as legal tender and the Bahamas launching their own CBDC were noted. The IMF believes well-designed CBDCs can enhance payment systems and financial inclusion. It advises against banning crypto assets and suggests addressing the drivers of crypto demand and improving transparency. The IMF's proposal for a single ledger CBDC payment system has faced criticism.