Gita Gopinath, first deputy managing director of the International Monetary Fund (IMF), said that she has steered clear of cryptocurrencies and has not invested a single dollar in them.
Gopinath said in an exclusive interview with Business Today Executive Director Rahul Kanwal that she found crypto assets, like cryptocurrencies and NFTs risky and speculative.
She said, “Everybody needs to recognise that crypto assets are extremely risky and speculative.”
Gopinath spoke about the steep fall in the global market cap of cryptocurrencies and how it halved within six months.
She said, “It has gone from a three trillion-dollar market to a one and half trillion-dollar market in six months.”
Talking about the promise of easy and high returns, Gopinath said, “It is not an easy return market. Investors are taking a very large risk.”
Just like several other central bankers and economists, Gopinath also believes that cryptocurrencies need regulation because of the risk involved in investing and trading in crypto.
Gopinath stressed, “Like every risky asset, even crypto needs regulation.”
Finally, when asked whether Gopinath had also invested in cryptocurrencies and other crypto assets, she replied, “I have stayed away (from crypto) completely. But that is just my level of risk aversion.”
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today