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UN urges developing nations to avoid usage of cryptocurrency

Last week, the United Nations Conference on Trade and Development (UNCTAD) advised government officials in developing nations all around the globe to take steps to avoid widespread usage of cryptocurrencies.

The United Nations General Assembly created the United Nations Conference on Trade and Development (UNCTAD) as a permanent international entity in 1964. It is a component of the United Nations Secretariat. Both the Economic and Social Council and the General Assembly of the United Nations receive reports from this body. According to the website for UNCTAD, the organisation has 195 member nations and 204 projects spread over 70 countries.

“Global use of cryptocurrencies has increased exponentially during the COVID-19 pandemic, including in developing countries,” the group noted. “While these private digital currencies have rewarded some and facilitated remittances, they are an unstable financial asset that can also bring social risks and costs.”

The trade group noted that it has sent three policy papers that are connected to the topic. The first one, which was released on June 13, explains the significant risks associated with not regulating cryptocurrencies. In another, which was released on June 22nd, the authorities discuss public payment systems as a solution to the threats that cryptocurrencies pose to financial stability and security. The third document, which was released on August 10, focuses on the ways in which cryptocurrencies might result in delays in domestic resource mobilization in developing nations.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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