Russia Sanctions Could Spur Use of Crypto: IMF's Gopinath

Gita Gopinath, the first deputy managing director at the IMF, says the Ukraine conflict could promote the wider use of crypto.

AccessTimeIconMar 31, 2022 at 2:23 p.m. UTC
Updated Mar 31, 2022 at 2:44 p.m. UTC

Amitoj Singh is CoinDesk's regulatory reporter covering India. He holds BTC and ETH below CoinDesk's disclosure threshold of $1,000.

A top International Monetary Fund official called for international regulation of digital finance, predicting "the adoption of digital finance, from cryptocurrencies to stablecoins and central bank digital currencies" following the unprecedented sanctions on Russia after its invasion of Ukraine.

  • Gita Gopinath, the first deputy managing director at the IMF, made the comments in an interview with the Financial Times published Thursday.
  • Gopinath said that "all of these will get even greater attention following the recent episodes, which draws us to the question of international regulation." She advocated for a coordinated approach to fill a gap in international regulation.
  • Measures imposed by western countries on Russia "could encourage the emergence of small currency blocs based on trade between separate groups of countries," she said.
  • While the dollar may become less dominant in the international financial system, it will remain the major global currency, even if fragmented, according to Gopinath.
  • Gopinath's comments reiterate the stance taken by the IMF last year, when it outlined the need for a global approach to crypto regulation. A blog post from December stated the need for a “comprehensive, consistent and coordinated” approach in order to harness the benefits of crypto’s underlying technology while mitigating some of its risks.


DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Amitoj Singh is CoinDesk's regulatory reporter covering India. He holds BTC and ETH below CoinDesk's disclosure threshold of $1,000.

CoinDesk - Unknown

Amitoj Singh is CoinDesk's regulatory reporter covering India. He holds BTC and ETH below CoinDesk's disclosure threshold of $1,000.

Trending

1
CoinDesk - Unknown
Hard Times in Crypto: the Unintended Consequences of Going Public

The third and final reflection on a series of risks we’re thinking about during these crypto down days.

CoinDesk - Unknown
2
CoinDesk - Unknown
After Bitcoin Maximalism

A Twitter debate sparks much reflection.

CoinDesk - Unknown
3
CoinDesk - Unknown
Three Arrows Paper Trail Leads to Trading Desk Obscured Via Offshore Entities

As Three Arrows Capital collapsed under market pressure, its much-lesser known trading desk, TPS Capital, remained active, sources say. But a complex ownership structure might frustrate creditors' efforts to collect.

CoinDesk - Unknown
4
CoinDesk - Unknown
June Was Bitcoin’s Worst Month Ever

Plus, European crypto regulation comes into view.

CoinDesk - Unknown