The IMF to identify obstacles to debt restructuring and suggested banning cryptocurrencies could be a viable option

During a G20 meeting on Saturday, International Monetary Fund (IMF) Managing Director Kristalina Georgieva stated that there are some disagreements over restructuring debt for distressed economies, while adding that banning private cryptocurrencies should be an option. The comments were made on the sidelines of India’s G20 presidency, which is taking place as its South Asian neighbours Sri Lanka, Bangladesh and Pakistan are seeking urgent IMF funds due to an economic slowdown caused by the COVID-19 pandemic and the Russia-Ukraine war.

China, which is the world’s largest bilateral creditor, urged G20 nations on Friday to conduct a fair, objective, and in-depth analysis of the causes of global debt issues. Georgieva co-chaired a roundtable on global sovereign debt with Indian Finance Minister Nirmala Sitharaman, and stated that “there is a commitment to bridging differences for the benefit of countries”.

Georgieva also emphasized the need for strong regulation of cryptocurrencies, differentiating between central bank digital currencies and privately issued crypto assets, and added that if regulation fails, then banning those assets should not be taken off the table, as they may create financial stability risks.