Saudi Arabia’s Central Bank Governor Wants IMF to Get Involved With Crypto and Provide Regulation

Updated: 16 October 2023

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Ayman Alsayari, Saudi Central Bank’s (SAMA) governor, encouraged the International Monetary Fund (IMF) to significantly regulate digital currencies.

The #Saudi Central Bank (@SAMA_GOV) Governor Ayman Alsayari said that crypto currencies and their brokers pose a potential threat to financial stability.https://t.co/r9I3fa1Khh

— Saudi Gazette (@Saudi_Gazette) October 15, 2023

Alsayari requested this during the IMF Annual Meetings in Marrakech, Morocco. The meetings took place between October 9 and 15, and the SAMA governor stated that the industry needs good supervision, regulation, and coordination of crypto-related activities.

“In this context, we support the work and relevant roadmap of the IMF and the Financial Stability Board to address risks related to cryptocurrencies,” he added, according to a report published by Cryptonews.

Maintaining the Balance

Alsayari believes the IMF’s reaction is necessary to handle digital currencies’ potential dangers and risks. The remarks came after the IMF, alongside global financial regulators, announced a roadmap in September of this year.

The roadmap revealed that the main goal is to cooperate to set measures to stop digital assets from undermining financial stability.

One such measure came from the Financial Stability Board, which suggested licensing crypto service providers. It also encouraged countries to implement the Financial Action Task Force (FATF) and AML and CTF standards.

Inflation Continues to Trouble the Global Economy

Governor Alsayari noted that the global economy is seeing a drastic slump caused by the inflation rates. He pointed out that the world has adopted tight monetary policies to bring down inflation.

The G20 roadmap released in September is considered beneficial for managing the potential threat digital assets pose to the financial industry.

Even so, the roadmap is expected to cause additional reassessments of cryptocurrencies by different governments.

So far, there have been numerous bids and calls for regulating crypto assets, which reveals that traditional financial institutions and regulators are open to transforming the crypto industry into something they can understand and control.

Despite the rising interest and activity aimed at achieving this, the crypto sector has proven surprisingly resilient, as none of the existing descriptions apply to it perfectly.

The IMF’s CBDC handbook and regulatory roadmap are expected to create a more regulated crypto space. However, if they see a chance to work with digital assets, many governments will adopt the global guidelines rather than ban the crypto sector.

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