<br>united nations, Intergovernmental organization

United Nations, Aug 11 The UN Conference on Trade and Development (UNCTAD) called for action to curb cryptocurrencies in developing countries in three policy briefs.While private digital currencies have rewarded some, and facilitate remittances, they are an unstable financial asset that can also bring social risks and costs, the UN trade and development body warned on Wednesday.The three newly-released UNCTAD policy briefs published on Wednesday examined the risks and costs of cryptocurrencies, including the threats cryptocurrencies bring to financial stability, domestic resource mobilisation and the security of monetary systems.Global use of cryptocurrencies has increased exponentially during the Covid-19 pandemic, including in developing countries, Xinhua news agency reported.Reasons for the rapid uptake of cryptocurrencies in developing countries include facilitation of remittances, as well as their use as a hedge against currency and inflation risks, UNCTAD said.Recent digital currency shocks in the market suggest that there are private risks to holding cryptocurrencies, but if the central bank steps in to protect financial stability, then the problem becomes a public one, the agency added.If cryptocurrencies become a widespread means of payment and even replace domestic currencies unofficially, this could jeopardise the monetary sovereignty of countries.In developing countries with unmet demand for reserve currencies, the so-called "stablecoins", a type of digital currency that is pegged to the US dollar, pose particular risks."For some of these reasons, the International Monetary Fund has expressed the view that cryptocurrencies pose risks as legal tender," the agency said.UNCTAD urged authorities to act to halt the expansion of cryptocurrencies in developing countries and outlined several recommendations, including restricting advertisements related to cryptocurrencies as for other high-risk financial assets.There are needs to regulate crypto exchanges, digital wallets and decentralised finance, and to ban regulated financial institutions from holding cryptocurrencies, including stablecoins, or offering related products to clients, the agency added.Capital controls should be redesigned to take account of the decentralised, borderless and pseudonymous features of cryptocurrencies, UNCTAD noted.Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

<Br>United NationsFOLLOW

<br>united nations, Latest News

United Nations, Aug 12 China has again come to the rescue of a Pakistani terrorist by blocking a ... ...

Terming China's defence of Abdul Rauf Azhar, a top commander of Pakistan-based proscribed terror outfit Jaish-e-Mohammad (JeM), as "unfortunate", India on Friday said that when it comes to the collective battle against terrorism the international com ...

United Nations, Aug 12 India has expressed concern over the shelling near Ukraine's Zaporizhzhya nuclear plant, the biggest ... ...

Over seven per cent of Indians owned digital currency in the form of cryptocurrency in 2021, according to the United Nations trade and development body UNCTAD, which said the use of cryptocurrencies globally, including the developing countries, has i ...

United Nations, Aug 12 UN Secretary-General Antonio Guterres has said that he is "gravely concerned" about the unfolding ... ...

United Nations, Aug 11 Secretary-General Antonio Guterres has appointed Argentine Rear Admiral Guillermo Pablo Rios as the head ... ...

United Nations, Aug 11 UN Secretary-General Antonio Guterres has congratulated the people of Kenya for the peaceful voting ... ...

United Nations, Aug 11 The UN Conference on Trade and Development (UNCTAD) called for action to curb cryptocurrencies ... ...