The United Nations Conference on Trade and Development (UNCTD), has called on developing countries to slow down on their adoption of cryptocurrency.
This, the agency said has become necessary because this could endanger monetary system security, domestic resource mobilization, and financial stability.
The agency, citing its earlier published circulars said that holding cryptocurrency has the potential to cause financial losses due to the risks associated with the growing popularity of digital assets.
“While these private digital currencies have rewarded some, and facilitate remittances, they are an unstable financial asset that can also bring social risks and costs.”
“Given the risk of accentuating the digital divide in developing countries, UNCTAD urges authorities to maintain the issuance and distribution of cash.”
The UNCTAD, therefore, proposed that such countries regulate digital asset platforms, restrict crypto-related advertisements and roll out digital payment systems.