IMF anti crypto in Nepal

[_act_]

Nepal would be better off regulating it properly than pretending a ban does anything but push activity underground.

This is what some countries do not know, Nepal government can regulate cryptocurrencies and generate tax from it. The crypto business that will be established in their country and the money generated through crypto taxes will add to Nepal GDP and economy. IMF know this, but they will not encourage the country to regulate cryptocurrencies.

If citizens want something, I do not know the reason the government of the country supposed not to give the citizens what they want. It is very clear that Nepal citizens want cryptocurrencies ban to be lifted.

[Fiatless]

Bans never really work, that meaningless 13% of GDP figure proves people will use bitcoin regardless of what the law says. The IMF isn't worried about citizens, they're worried about losing control over capital flows.

Nepal would be better off regulating it properly than pretending a ban does anything but push activity underground. What can you say other than HFSP?

IMF will do everything possible to ensure that borrowers implement the provisions of the loan agreement. They don't care about the economic impact of these policies on the common man. In my country, they forced the government to sack workers and stop subsidizing some essential products. This led to massive downsizing of the public corporations and the poverty level increased. 

Most countries are regulating the crypto industry to attract more investors and increase government revenue through taxes and licenses. Nepal's lender will not let that happen because they have other interests.

[Dogedegen]

The IMF said crypto flows in Nepal grew markedly between 2019 and 2024 despite a legal ban, peaking above 13% of GDP in 2021.
It urged Nepal to regulate crypto under international standards, warning of capital-control evasion and deposit outflows.
An expert told Decrypt that trading and remittances keep crypto alive in banned markets, making regulation a smarter tool than prohibition.

Crypto is not a threat, but why is IMF so concerned. IMF that supposed to advise the country to legalized crypto because it is what the people in the country want.

https://decrypt.co/370738/imf-urges-nepal-monitor-crypto-as-usage-rises-despite-ban

But isn't the IMF clear on what they are concerned about here and it is not an issue with crypto itself? They are concerned about capital-control evasion and deposit outflows, which all countries are basically concerned in their own territories. The IMF is saying that instead of the legal ban, they should regulate crypto using international standards. This means that the IMF is asking for Nepal to unban crypto, which is the opposite of being anti-crypto. They usually are anti-crypto, but in this case this is not an example of that. They asking to regulate it and to remove the ban.

IMF will do everything possible to ensure that borrowers implement the provisions of the loan agreement. They don't care about the economic impact of these policies on the common man. In my country, they forced the government to sack workers and stop subsidizing some essential products. This led to massive downsizing of the public corporations and the poverty level increased.  

Sometimes measures that are painful in the short-term are needed for better prosperity long term. The IMF does not care about the individual person and why should they? Policies are made to make countries be able to repay their own debts and stay solvent. In most cases public corporations are a bad idea and subsidizing is too, many countries employ way too many people in the public sector and because this is horribly managed it is the most inefficient way of using human capital and taxes. Countries that turn towards a lean model first will be the winners of the current century, even if that means some of their dear party members will not have jobs.

[retreat]

We understand that the IMF has a multitude of agendas, and they dislike it when a country becomes independent of them. They perceive Bitcoin as a threat to what they've built. So, when a country needs their help, they swoop in and play nice—requiring the country to change its crypto regulations in order to gain their trust and maintain its macroeconomic stability. This is all just a false narrative they've created to protect their interests. But even so, it is of no use, because despite the total ban, the rate of crypto adoption in Nepal is still increasing.