Saudi Central Bank Governor Calls for IMF Regulation of Digital Currencies
Ayman Alsayari, the governor of the Saudi Central Bank (SAMA), has urged the International Monetary Fund (IMF) to implement significant regulation on digital currencies. Speaking at the IMF Annual Meetings in Marrakech, Morocco, Alsayari emphasized the need for supervision, regulation, and coordination of crypto-related activities.
The #Saudi Central Bank (@SAMA_GOV) Governor Ayman Alsayari said that crypto currencies and their brokers pose a potential threat to financial stability.https://t.co/r9I3fa1Khh
— Saudi Gazette (@Saudi_Gazette) October 15, 2023
Alsayari expressed support for the IMF’s work and roadmap in addressing cryptocurrency risks. The IMF and global financial regulators released a roadmap in September aimed at preventing digital assets from undermining financial stability.
Maintaining the Balance
Alsayari believes that the IMF’s response is crucial in managing the potential dangers and risks associated with digital currencies. The Financial Stability Board has already proposed licensing crypto service providers and has encouraged the adoption of AML and CTF standards.
Inflation Continues to Trouble the Global Economy
Governor Alsayari highlighted the global economic slump caused by inflation rates. He noted that tight monetary policies have been implemented worldwide to combat inflation. The G20 roadmap released in September aims to address the potential threats posed by digital assets to the financial industry.
Despite growing calls for regulation, the crypto sector has proven resilient. The IMF’s CBDC handbook and regulatory roadmap are expected to create a more regulated crypto space. However, many governments are likely to adopt global guidelines instead of banning cryptocurrencies if they see an opportunity to work with digital assets.
Hot Take: A Call for International Regulation
Ayman Alsayari’s plea for significant regulation of digital currencies from the IMF highlights the growing concerns surrounding their impact on financial stability. With inflation rates causing economic challenges globally, it is crucial for governments and international organizations to establish effective supervision and coordination in the crypto industry.
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