What does UNCTAD 2022 a & 2022b say about cryptocurrencies?

In the UNCTAD 2022 a & 2022b reports, there are significant discussions surrounding the role and impact of cryptocurrencies. While cryptocurrencies, such as Bitcoin, have opened up new avenues for economic transactions, there are also concerns about their potential risks. The reports highlight that while these digital assets may facilitate faster and more convenient remittance flows, they also pose challenges to financial stability, domestic resource mobilization, and the safety of monetary systems. UNCTAD warns that cryptocurrencies, being decentralized and anonymous, could facilitate illegal financial flows, tax evasion, and undermine the effectiveness of capital controls, which are crucial for developing countries to maintain their policy space and macroeconomic stability. The reports further stress that while cryptocurrencies offer economic opportunities to some, their volatility and instability make them high-risk financial assets. Amidst the rapid growth of the crypto ecosystem, UNCTAD urges developing countries to adopt a cautious approach towards cryptocurrencies and to implement comprehensive regulatory measures to mitigate their potential risks. The reports also call for international cooperation to establish a global regulatory framework and share information on cryptocurrencies to ensure their safe and responsible use.