UNCTAD: there are many risks in the use of cryptocurrency in developing countries

[United Nations Conference on Trade and development: there are many risks in the use of cryptocurrency in developing countries] according to the golden financial report, the United Nations Conference on Trade and development (UNCTAD) issued a series of policy briefs on Wednesday, urging the restriction of cryptocurrency in the whole developing countries. UNCTAD, which is part of the United Nations Secretariat, said that cryptocurrencies could inhibit the effectiveness of capital controls that developing countries usually use to ensure macroeconomic stability. UNCTAD indicated that stable currencies pose special risks in developing countries with strong demand for reserve currencies. The International Monetary Fund also expressed concern about the possible risks of cryptocurrency as legal tender. UNCTAD recommended the regulation of cryptocurrency exchanges, digital wallets and decentralized finance. Financial institutions may also be prohibited from holding cryptocurrencies (including stable currencies) or providing related products. It urged the authorities to coordinate globally on cryptocurrency taxation, regulation and information sharing, and to promote restrictions on cryptocurrency advertising. Finally, it proposes to redesign capital controls to take into account the decentralized, borderless and anonymous characteristics of cryptocurrencies.