A United Nations trade body has recommended a set of policy actions to “curb the expansion of cryptocurrencies in developing countries.” The intergovernmental group stressed that if cryptocurrencies become a widespread means of payment, it could jeopardize the monetary sovereignty of countries.
UN Trade Body’s Crypto Policy Recommendations
The United Nations Conference on Trade and Development (UNCTAD) urged authorities in developing countries worldwide to take action to prevent the widespread use of cryptocurrencies last week.
UNCTAD is a permanent intergovernmental body established by the United Nations General Assembly in 1964. It is part of the U.N. Secretariat. The group reports to the U.N. General Assembly and the Economic and Social Council. UNCTAD has 195 member states and 204 projects in 70 countries, its website shows.
“Global use of cryptocurrencies has increased exponentially during the Covid-19 pandemic, including in developing countries,” the group noted. “While these private digital currencies have rewarded some, and facilitate remittances, they are an unstable financial asset that can also bring social risks and costs.”
The intergovernmental body detailed:
Ако криптовалуте постану широко распрострањено средство плаћања и чак незванично замене домаће валуте (процес који се зове криптоизација), то би могло да угрози монетарни суверенитет земаља.
“While cryptocurrencies can facilitate remittances, they may also enable tax evasion and avoidance through illicit flows, just as if to a tax haven where ownership is not easily identifiable,” UNCTAD described. “In this way, cryptocurrencies may also curb the effectiveness of capital controls, a key instrument for developing countries to preserve their policy space and macroeconomic stability.”
The trade body explained that it has released three related policy briefs. One, published on June 13, outlines the високи трошкови of leaving cryptocurrencies unregulated. Another, published on June 22, discusses public payment systems in response to the financial stability and security risks of cryptocurrencies. The third brief, published on Aug. 10, focuses on how cryptocurrencies can undermine domestic resource mobilization in developing countries.
One country that has adopted bitcoin as legal tender alongside the U.S. dollar despite repeated warnings by the International Monetary Fund (IMF) is El Salvador. The country has купио 2,381 bitcoins for its treasury since BTC became legal tender in September last year.
UNCTAD has recommended a set of policy actions, stating that it “urges authorities to take the following actions to curb the expansion of cryptocurrencies in developing countries.”
The first recommendation is to “Ensure comprehensive financial regulation of cryptocurrencies through regulating crypto exchanges, digital wallets, and decentralized finance, and banning regulated financial institutions from holding cryptocurrencies (including stablecoins) or offering related products to clients.”
Secondly, authorities should “Restrict advertisements related to cryptocurrencies,” “Provide a safe, reliable, and affordable public payment system adapted to the digital era,” and “Agree and implement global tax coordination regarding cryptocurrency tax treatments, regulation, and information sharing.” The last recommendation urges authorities to:
Redesign capital controls to take account of the decentralized, borderless and pseudonymous features of cryptocurrencies.
What do you think about the U.N. Trade body urging authorities in developing countries to curb the widespread use of cryptocurrencies? Let us know in the comments section below.
Кредити за слике: Схуттерстоцк, Пикабаи, Вики Цоммонс, лев радин
Одрицање од одговорности: Овај чланак служи само у информативне сврхе. То није директна понуда или прикупљање понуда за куповину или продају, или препорука или потврда било ког производа, услуге или компаније. Битцоин.цом не пружа инвестиционе, пореске, правне или рачуноводствене савете. Ни компанија ни аутор нису директно или индиректно одговорни за било какву штету или губитак проузрокован или наводно проузрокован или повезан са употребом или ослањањем на било који садржај, робу или услуге поменуте у овом чланку.
Source: https://news.bitcoin.com/un-agency-urges-authorities-to-curb-cryptocurrency-expansion-in-developing-countries/