According to local media reports, the International Monetary Fund (IMF) has expressed alarm about India’s cryptocurrency adoption, claiming it poses substantial threats to the country’s financial stability.
Cryptocurrencies pose serious dangers, especially to India’s financial stability, according to IMF mission leader for India Nada Choueiri.
“Without adequate regulatory measures, the crypto-assets ecosystem may face significant consumer protection concerns, including as fraud and cybercrime,” Choueiri added.
India’s finance ministry is allegedly engaging with the International Monetary Fund, the World Bank, the Reserve Bank of India, and the Securities and Exchange Board of India for the next six months on a regulatory framework for digital assets.
According to an IMF working paper, cryptocurrency use is related with a greater impression of corruption and more stringent capital controls.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.