A subsidiary of the United Nations has called for the elimination of cryptocurrency in developing countries.
According to the details, the United Nations Trade and Development Organization has said that some benefits have been obtained from a currency like crypto at the individual and corporate level, but it is still considered an unstable economic asset.
The United Nations report notes that the benefits of such currencies have not been highlighted by the risks they pose to economic stability. It is to be noted that cryptocurrency is one of the most popular forms of payment. Cryptocurrency transactions are done in digital form and this technology is called a blockchain.
The use of cryptocurrencies rose during #COVID19, but @UNCTAD warns of the risk they pose to financial stability, domestic mobilization and the security of monetary systems in developing countries. https://t.co/55yHDVHxW9
— UN News (@UN_News_Centre) August 10, 2022
The crypto trend intensified during the severe wave of the Coronavirus. By 2021, 15 of the world’s 20 largest economies were trading in cryptocurrencies. Cryptocurrencies accounted for 12.7 percent of Ukraine’s economy, Russia 11.9 percent, and Venezuela 10.3 percent. It was also reported that cryptocurrency became popular in developing countries due to its opaque system.
Also, after the recent losses in the digital currency market, it has come to light what are the disadvantages of blocking cryptocurrencies, however, if the central bank takes steps to stabilize the economy, there may be more difficulties.
The report further stated that if crypto becomes central to payments, the economic sovereignty of developing countries may also be at risk. The UN body called for regulation of crypto exchanges, digital wallets, and full economic oversight of cryptocurrencies in developing countries.