The UN suggested that developing countries should “forget” about cryptocurrency
Following UNCTAD’s report on the cryptocurrency market, the UN recommended that countries with developing economies stop advertising cryptocurrencies.
The text, which the organization’s experts published, is titled “All that glitters is not gold: the high cost of leaving cryptocurrencies unregulated”.
The organization’s experts noted that the growing popularity of the crypto industry increases the vulnerability of macroeconomic stability. According to analysts’ estimates, the state may lose its monetary sovereignty, which may affect the maneuvering possibilities of the political aspect of statehood.
According to the speakers’ statements, its nature is not technical but refers to the issue’s political aspects. Its primary purpose is to consider the risks, the potential costs, and the current legal aspect of the problem.
Additionally, to prohibit the advertisement of cryptocurrencies at the state level, UNCTAD experts recommended the legalizing compulsory registration of users’ crypto wallets and the regulation of the crypto sector of the economy. Also, in their opinion, the activities of crypto exchanges should be licensed.
To reduce the attractiveness of the cryptocurrency market, the organization proposed introducing new trade fees and, if they already exist, increasing their amount. As for banks, UNCTAD believes that their ability to store or transfer cryptocurrencies should be restricted. As an alternative, the countries’ central banks were invited to issue CBDC and deal with implementing a system of quick payments for users.
Earlier, the UN stated that countries such as the Central African Republic should focus on more pressing economic issues rather than playing with the metaverse and the crypto industry. This statement was made in response to the fact that the CAR tokenized the country’s natural resources.
