Saudi Central Bank Governor Urges IMF to Regulate Cryptocurrencies

Saudi Central Bank Governor Ayman Alsayari has called upon the International Monetary Fund (IMF) to initiate comprehensive regulation of cryptocurrencies, emphasizing the need for supervision, coordination, and effective governance in the crypto sphere. Alsayari expressed support for the IMF and Financial Stability Board's roadmap aimed at addressing crypto-related risks, endorsing a global effort to regulate cryptocurrency activities.

The G20 Roadmap, presented during the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting, seeks to enhance the regulation of cryptocurrency activities. It is anticipated to serve as a framework for global policy coordination, the development of risk mitigation strategies, and the regulation of crypto assets.

In a context marked by concerns about the slowing global economy and rising inflation rates, global leaders are advocating for stricter monetary policies worldwide. The G20 roadmap is perceived as a valuable tool for managing potential threats that cryptocurrencies may pose to financial stability, particularly amid ongoing conflicts like the Israel-Hamas dispute.

The economic uncertainty has prompted a downward adjustment of the global economic forecast to 2.9% for 2024, with additional fluctuations expected due to the Middle East conflict escalation. The roadmap is anticipated to prompt governments worldwide to reassess their cryptocurrency policies. For instance, India is currently considering a shift from an outright ban to a regulatory approach in line with IMF-FSB guidelines.

These calls for cryptocurrency regulation reflect traditional financial institutions' ongoing efforts to comprehend and exert control over the evolving crypto landscape. The IMF's emphasis on the risks associated with crypto adoption, coupled with its Central Bank Digital Currency (CBDC) handbook and the regulatory roadmap, is likely to lead to a more regulated crypto environment. This anticipated global guideline may encourage more governments to opt for regulated cryptocurrency use, potentially altering the cryptocurrency landscape as we know it. The effectiveness of this approach will become evident over time.