Everywhere else in the world, cryptos tend to gain ground. While some countries are embracing this trend to try to regulate them, others choose to ban them. IMF economists think this strategy is fundamentally wrong.
Banning cryptos is not effective in the long run
Although it is undeniable that cryptos are gaining popularity, several countries around the world are still hostile to them. We see this for example in the United States where their regulations slip between the comings and goings of parliamentarians in Congress.
It is true that despite this hostility, cryptos are not banned in America. This is not the option chosen by many countries on the planet who prefer to limit access to their population. This, by invoking financial and economic arguments.
Thus, in Argentina and the Dominican Republic for example, cryptos are not allowed. These countries fear that they will destabilize the stability of their financial systems. This, by promoting tax evasion, corruption and money laundering, among others.
If this choice is legitimate, it seems that it is potentially neither relevant nor viable over time. This is the position that some economists defend of the International Monetary Fund (IMF) in a study published Thursday, June 22.
According to these experts, banning cryptos “may not be effective in the long term”. The posture that would be, would consist, they explain, in addressing the reasons underlying the attraction for these assets. It would then be a question of attacking the “drivers of demand for cryptocurrencies, including citizens’ unmet needs for digital payment”.
In addition, states should also bet on measures to improve transparency related to cryptos. This implies that efforts be made to set up statistical systems on crypto transactions carried out in the countries.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
