According to the International Monetary Fund, imposing a ban on cryptocurrency might not be the ideal approach to counterbalancing its risks. This new statement comes after the IMF had earlier proposed crypto prohibition as an option only a few months ago, citing that it could prevent countries from reaping the benefits that come with it. Instead of a complete ban, the IMF suggests that countries of Latin America and the Caribbean should focus on identifying and addressing the factors driving the demand for cryptocurrencies. These drivers include unmet digital payment needs of citizens and improving transparency by recording cryptocurrency transactions in their national statistics.
The IMF also noted that some of these countries, including Brazil, Argentina, Colombia, and Ecuador, were among the top 20 countries for global cryptocurrency adoption in 2022, although Argentina later banned cryptocurrency use in May of that year.