The International Monetary Fund, which had suggested as a possible solution just a few months earlier, said that banning crypto might not be the best option to mitigate the risks associated with it, because countries would lose out on the benefits associated with it.

In a post on its website about the interest in central banks digital currency adoption in Latin America, the IMF stated that this approach might not be effective over the long term. The region should focus instead on the drivers of demand for crypto assets, such as citizens’ unmet payment needs and improving transparency by recording crypto asset transaction in national statistics.

The IMF stated that Latin American countries such as Brazil, Argentina and Colombia were expected to be among the top 20 of global adoption for crypto assets in 2022. Argentina, however, banned the use of crypto assets by May that same year.

Many countries around the world are exploring digital central bank currencies. These currencies can be, or digital representations, of their local currency issued by their central banks. The Bahamas and Nigeria already have a CBDC, while the European Union is on schedule to release its draft law for the digital euro this month.

Sheldon Reback is the editor.