IMF chief says rules, infrastructure needed to prevent crypto risks

The head of the International Monetary Fund (IMF) said on Thursday that crypto currencies need to be regulated because they pose risks to financial stability.

“The challenge is that high crypto asset adoption could undermine macro-financial stability,” the IMF’s managing director, Kristalina Georgieva, said in her opening speech at a conference in Seoul on digital currencies. She said high crypto asset adoption could affect the effectiveness of monetary policy transmission, capital flow management measures and fiscal sustainability due to volatile tax collection.