The International Monetary Fund, or IMF, has finally spoken about cryptocurrencies and their impact on the world. Gita Gopinath, the chief economist for the IMF, said that the only way to counter the ill effects of cryptocurrencies is by agreeing to global regulations. It is similar to what Binance had suggested months back in one of its ad campaigns. While Binance’s vision was seen as far-fetched then, even anti-crypto lobbies seem to be agreeing with Gopinath’s views. Whether these opinions have any effect on actual regulations is subject to debate, but it has had an impact on the global crypto community without a doubt.
However, the more important statement from Gopinath came in the context of banning cryptocurrencies. She believes that it is a practical impossibility given the inherent nature of cryptocurrencies. While countries can individually ban cryptocurrencies, there is no way to stop offshore companies from continuing regulations. As crypto experts say – cryptocurrency cannot be banned because you cannot ban mathematical codes. Gopinath’s statements reveal that she is one of the few traditional economists who understand the true nature of cryptocurrencies.
In the present global context, Gita Gopinath’s opinion will have a huge impact on how countries go about regulating cryptocurrencies. All present trends suggest a future of unified regulations. However, there has been no formal initiative in that regard yet. While nothing can be said with certainty so soon, the significance of IMF’s stance will be immense in countries going through regulatory turmoil, like India and South Korea.
