business

the UN criticizes its use in developing countries

Written by ebookingservices

The agency warned about the consequences of the adoption of digital assets in peripheral countries and recommended central bank digital currencies

The United Nations Conference on Trade and Development (UNCTAD) earmarked a series of recommendations for developing countries, in which he warned about the use, trade and advertising of Bitcoin (BTC) and other digital assets, in the context of constant advancement and expansion of the market of the cryptocurrencies,

In the statement, the confederation alarmed that if cryptocurrencies become a widespread means of payment, and even unofficially replace the different national currencies, “the monetary sovereignty of countries could be endangered.”

This stance against the use of BTC is similar to the position taken by other international institutions such as the International Monetary Fund (IMF).

This body, after the adoption of BTC by The Saviorstrongly warned the Central American nation, as well as others that chose to employ similar activities.

The UN proposals

For countries with demand for economic reserves, the UNCTAD He also questioned the use of stable coins (stablecoins), for presenting “particular risks”.

The confederacy not only warns about the relationship with bitcoin solely for its use, but also claims those who regulate peripheral countries to restrict or even prohibit the advertising of cryptocurrencies or wallets in networks social and in Public spaces.

The United Nations proposes to the countries in question that they can supply the population with central bank digital currencies (CBDC).

The United Nations proposes to the countries in question that they can supply the population with central bank digital currencies (CBDC).

UNCTAD conducted a list of the developing nations with the largest possession of bitcoin and other assets, which is led by Ukraine Y Russia. Among the first 10 of the ranking there are also two countries of America LatinWhat Venezuela (3rd) and Colombia (10°).

The United Nations propose to the countries in question that they can supply the population with central bank digital currencies (CBDC).

Another suggestion is that they provide a “fast retail” checkout system, but they sense that there may be a breach as well. The proposed solution is to maintain the issuance of cash.

What consequences can the adoption of cryptocurrencies bring?

The main advantage that entail the use of cryptocurrencies are the facilitation of remittances and the support they provide against inflation, according to the UN.

But these two consequences are big problems for the population of peripheral countries. Especially in those who have a weak economic system.

It is for this reason that the organization promotes the use of CBDCswhich would apparently generate a lower flow in the use of bitcoin.

Countries -such as the Central African Republic- that adopted BTC despite public warnings.

Countries -such as the Central African Republic- that adopted BTC despite public warnings.

The issue at hand is that instead of giving rise to regulations to counteract the risks generated by cryptocurrencies, the UN criticizes their application.

And these requests made by the organization that promotes peace and security is not something recent, but has already been happening for a few years.

However, there are countries -such as Central African Republic– who adopted BTC despite public warnings.

.

About the author

ebookingservices

Leave a Comment