🎗️BREAKING:

New policy paper reveals UNBELIEVABLE suggestions on future of crypto-assets

You won't believe what they said. 🔥

Paper prepared by the IMF and FSB after India's G20 Presidency request.

It comes after Finance Minister Nirmala Sitharaman's call for a crypto framework.

2. Widespread crypto adoption could impact monetary policies of nations.

Potential threats include undermining monetary policy, affecting fiscal resources, and global financial instability.

3. No outright ban on cryptocurrencies due to their borderless nature.

Enforcing complete bans is challenging and can lead to spillover effects.

Instead, licensing of #cryptocurrency service providers is suggested.

4. The paper advises jurisdictions to:

Safeguard monetary sovereignty.

Strengthen monetary policy frameworks.

Ensure clear tax treatments for crypto assets.

5. Outright bans can be counterproductive, but targeted measures in certain areas might be needed.

Especially in emerging markets, targeted regulations might be more appropriate.

6. Licensing crypto service providers will bridge data gaps.

Licensed entities can ensure better compliance, monitoring, and reporting.

7. There's growing worry about stablecoins replacing traditional currency.

Such coins, pegged to fiat money, might cause rapid capital flight.

They may also transmit volatility more abruptly, posing financial stability risks.

8. Overall, the policy paper emphasizes the need for regulation, but not an outright ban, to address the challenges posed by crypto and protect financial stability.

The G20 nations will further discuss these recommendations in the upcoming summit.