IMF Working Papers Volume 2023 Issue 037: Crypto Assets and CBDCs in Latin America and the Caribbean: Opportunities and Risks (2023)

Crypto Assets and CBDCs in Latin America and the Caribbean: Opportunities and Risks

Author:

Maximiliano Appendino

Maximiliano Appendino
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Olga Bespalova

0000000404811396

https://isni.org/isni/0000000404811396 International Monetary Fund

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Ms. Rina Bhattacharya

Ms. Rina Bhattacharya
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Jean François Clevy

Jean François Clevy
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Ms. Nan Geng

Ms. Nan Geng
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Mr. Takuji Komatsuzaki

Mr. Takuji Komatsuzaki
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Justin Lesniak

Justin Lesniak
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Weicheng Lian

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Ms. Sandra Marcelino

Ms. Sandra Marcelino
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Mr. Mauricio Villafuerte

Mr. Mauricio Villafuerte
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Mr. Yorbol Yakhshilikov

Mr. Yorbol Yakhshilikov
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Series:: IMF Working Papers

Volume/Issue:: Volume 2023: Issue 037

Publication Date:: 17 Feb 2023

DOI:: https://doi.org/10.5089/9798400234804.001

ISBN:: 9798400234804

ISSN:: 1018-5941

Pages:: 42

Keywords:: crypto assets regulation; asset substitution; CBDCs in Latin America and the Caribbean; Policy recommendation; cypto assets; IMF working paper 23/37; Virtual currencies; Central Bank digital currencies; Digital currencies; Payment systems; Currencies; Caribbean; Central America; South America; Global

Legal-disclaimer:: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Series:: IMF Working Papers

Volume/Issue:: Volume 2023: Issue 037

Language:: English

Publication Date:: 17 Feb 2023

DOI:: https://doi.org/10.5089/9798400234804.001

ISBN:: 9798400234804

ISSN:: 1018-5941

Pages:: 42

Keywords:: crypto assets regulation; asset substitution; CBDCs in Latin America and the Caribbean; Policy recommendation; cypto assets; IMF working paper 23/37; Virtual currencies; Central Bank digital currencies; Digital currencies; Payment systems; Currencies; Caribbean; Central America; South America; Global

Legal-disclaimer:: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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After providing a general overview of the nature, pros, and cons of crypto assets and CBDCs, this paper focuses on documenting their recent experience in LAC. The region records a high interest in unbacked crypto assets and stablecoins and its authorities’ policy responses have varied substantially, ranging from the introduction of Bitcoin as legal tender in El Salvador to their prohibition in many other countries worried about their impact on financial stability, currency/asset substitution, tax evasion, corruption, and money laundering. This paper also describes briefly the results of a survey on CBDCs’ introduction plans and crypto assets regulation. Finally, this paper presents some general lessons and policy recommendations for the region on the regulation of cypto assets, digital currencies and cross-border payments, and on the potential introduction of CBDCs.

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IMF Working Papers

ISSN:: 1018-5941

Publisher:: International Monetary Fund

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