Crypto adoption high in India, says IMF chief Kristalina Georgieva

Says high adoption may undermine macro-financial stability

The International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that cryptocurrency (crypto) asset adoption is high in countries like India, and the challenge is that high crypto asset adoption could undermine macrofinancial stability.

Speaking at an international conference on digital money in Seoul, Georgieva mentioned that crypto assets can undermine monetary policy transmission of changing interest rates. They could also circumvent capital flow management measures, such as limits on foreign currency holdings, and undermine fiscal sustainability if tax collection becomes volatile or more difficult to enforce.

“Crypto asset adoption is high, especially in emerging market economies like