Do digital currencies need policing?
The International Monetary Fund (IMF) has warned that the stability of some countries’ financial systems could soon be at risk because of unregulated crypto assets. Cryptocurrencies and other digital financial products created using blockchain technology are proliferating. They’re largely free from the controls of governments and central banks, but also free from any significant regulation. The IMF believes “comprehensive, consistent and coordinated” global regulation of the sector is now needed to prevent contagion if major crypto assets begin to collapse. Myanmar’s opposition-led shadow government this week announced that it will accept Tether, a so-called stablecoin, claiming to be pegged to the US dollar, as an official currency - a way of bypassing the control of the country’s military rulers. Meanwhile, across the border in China, authorities are cracking down on crypto and pushing ahead with plans for the country’s own Central Bank Digital Currency (CBDC) which critics fear could mark the beginning of the end of anonymous transactions. So, is global finance undergoing a transformation? And are more stringent rules of the road necessary to protect consumers and avoid economic calamity? Ritula Shah is joined by a panel of experts.
Producers: Zak Brophy and Paul Schuster.