IMF wants more bitcoin regulation in Africa in view of crypto growth

Africa is one of the continents where crypto such as bitcoin (BTC) can have a major impact in the future. The sector is therefore gaining more and more grip on the continent. The International Monetary Fund (IMF) is now calling for more crypto regulation there.

IMF wants more protection against bitcoin volatility

In a blog post the IMF cites the FTX debacle as one of the reasons why new regulation is needed. In addition, the falling bitcoin price is also a reason for more caution among governments, according to the IMF.

Currently, only a quarter of countries in Sub-Saharan Africa are said to have implemented crypto regulation. For example, six countries, Cameroon, Ethiopia, Lesoto, Sierra Leone, Tanzania and Congo, have completely banned crypto.

“Regulating a highly volatile and decentralized system remains a challenge for most governments, requiring a balance between minimizing risk and maximizing innovation.”

Risk of bitcoin as legal tender “is much greater”

As read earlier in the bitcoin news, not all African countries ban crypto just like that. The Central African Republic (CAR) has just embraced bitcoin as legal tender. It became the second country in the world to take this step. The first country was, of course, El Salvador.

The IMF is not happy when countries take such steps. As it writes in its blog post:

“The risks are all the greater if crypto is adopted as legal tender, as the Central African Republic recently did. If crypto-assets are held or accepted by the government as a means of payment, it could jeopardize public finances.”

And so the IMF is urging African countries to implement more regulation. This with a view to better protection of consumers on the continent.

Cardano (ADA) is one of the best-known crypto projects targeting Africa. There, the project wants to give people access to a bank account and digital identity.