Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), emphasized on Thursday that there is widespread adoption of cryptocurrency assets, particularly in countries like India.
Addressing an international conference on digital currency in Seoul, Georgieva pointed out that cryptocurrency assets have the potential to disrupt the effectiveness of adjusting interest rates as part of monetary policy.
She explained that this adoption could impact the ability to effectively implement monetary policies, manage capital flows, and sustain fiscal stability, primarily due to the unpredictable nature of tax collection associated with volatile cryptocurrencies.
In a panel discussion about the evolution of digital currency, Georgieva emphasized that policymakers have two choices: either actively participate and contribute to its development, making the process better, or risk being excluded because digital currency development will proceed regardless.
She highlighted a strong desire among stakeholders to share knowledge and insights, with a particular focus on learning from emerging markets.
Georgieva specifically mentioned India as a noteworthy example, praising its digital public infrastructure.