The governor of the Saudi Central Bank (SAMA), is advocating for the International Monetary Fund (IMF) to oversee the realm of cryptocurrencies.
Notably, in Marrakech, Alsayari emphasized the need for expert supervision and regulatory harmony in cryptocurrency initiatives. Moreover, this event coincided with the IMF Annual Meetings held from October 9th to 15th.
Additionally, as per the Saudi Gazette, the G20 Roadmap was disclosed at the FMCBG assembly. This roadmap focuses on strengthening the regulatory framework for digital assets.
The G20 Roadmap aims to manage cryptocurrencies and reform global financial institutions amid crypto uncertainties. Notably, its goals involve creating a global policy consensus, crafting risk mitigation strategies, and defining principles for digital asset regulation.
Moreover, in a time when the Israel-Hamas conflict intensifies, the IMF has also voiced the necessity for transformation within the cryptocurrency domain to foster worldwide fiscal equilibrium.
Saudi Central Bank Impact on Global Economic Shifts and Cryptocurrency Regulation
Governor Alsayari’s pronouncements materialize amidst concerns over the deceleration of the global economy and soaring inflation rates. Simultaneously, Statesmen worldwide are advocating for stricter fiscal policies across the board, and the G20 roadmap is perceived as an asset in mitigating the potential challenges that cryptocurrencies pose to financial constancy.
This uncertainty has resulted in the adjustment of the global economic projection for 2024, now estimated at 2.9%, with further modifications on the horizon, contingent on the escalating hostilities between Israel and Hamas militants in the Middle East.
The roadmap has already led to, and is expected to cause, a fresh appraisal of digital currencies by various governments. For instance, India is currently shifting its stance from an outright ban towards considering cryptocurrency regulation guided by IMF-FSB recommendations.
Considering the historical context, the numerous calls for regulating virtual assets reflect the desire of traditional financial institutions and regulators. They aim to transform the cryptocurrency sphere into a domain that they can easily understand and oversee.
Furthermore, dealing with the intricate crypto landscape poses a substantial challenge. This complexity coincides with the growing worldwide focus on Central Bank Digital Currencies (CBDCs). However, the expectation is that the IMF’s CBDC handbook, in combination with the regulatory roadmap, will result in a more meticulous regulation of the digital currency environment.
With increasing recognition by governments for potential collaboration with digital assets, the likelihood of bans on these assets decreasing is high. This aligns with the universal guideline for their utilization.
This scenario holds promise for the expansion of cryptocurrencies. However, it may also lead to their transformation into forms that are vastly different from the current ecosystem. The effectiveness of this guide will only become clear with the passage of time.
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