By Ousmène Jacques Mandeng and Piroska Nagy-Mohacsi*
Cryptocurrencies have been the subject of recent attacks by official sector representatives, and the G20 finance ministers will consider regulatory proposals at their next meeting in Buenos Aires. This column argues that while cryptocurrencies present certain risks, they also represent an important innovation that promises to enhance choice and efficiency in monetary transactions. A proportionate, risk-based regulatory approach is required to accommodate differential attitudes and experiences and to avoid stifling innovation and competition. This implies having an open debate before sweeping regulatory action. Cryptocurrencies, today’s privately issued monies or quasi-monies, are threatened with a regulatory clampdown. Many central banks and regulators are calling for their comprehensive regulation, and an announcement is expected at the forthcoming G20 meetings in Argentina. Most economists now echo this sentiment (James 2018, Turner 2018, Danielsson 2018) following earlier, more sympathetic voices (Fernandez-Villaverde 2017).















