- The regulator proposes to “control” demand instead
- The need for digital financial instruments can be filled by regulated solutions
- The IMF includes CBDC
The International Monetary Fund (IMF) published a report on the regulation of the cryptocurrency industry in Latin America and the Caribbean on Thursday, June 22. The regulator noted the difference in the authorities’ approach and deemed the blocking of the segment ineffective in the long term.
For read the original article, visit the official IMF website.. The report focuses on how different countries have approached the regulation of digital assets and CBDC integration.
Such as El Salvador legalized bitcoin back in 2021. However, President Nayib Buquele points out that this has had a significant economic impact.
- We recommend reading more about how El Salvador avoided default. Spoiler alert – for the most part, not thanks to bitcoin legalization.
At the same time, other countries are betting on CBDC for the most part. For example, the Bahamas became the first country in the world to launch a digital version of fiat in 2020.
The authors concluded that a gradual transformation of the financial system is the right approach. The same cannot be said for censorship:
“Although several countries (in the study region) have banned cryptoassets entirely, this approach may not be effective in the long term.”
The IMF recommends focusing primarily on demand management, abandoning attempts to “crush” it. There is a growing need for digital financial solutions in the region, and the regulator has pointed to an opportunity to make up for it with regulated instruments, such as CBDC.
In the region, there is a growing need for digital financial solutions.