Odaily Planet Daily News The International Monetary Fund (IMF) released a report stating that interest in central bank digital currencies has increased in Latin America and the Caribbean (LAC), while the use of cryptocurrencies varies. The risks posed by encrypted assets vary from country to country. The IMF has provided guidance on key elements of an appropriate policy response to mitigate risks while leveraging the potential benefits of technological innovations related to crypto assets. If properly designed, CBDCs could enhance the usability, resilience, and efficiency of payment systems and increase financial inclusion in Latin America and the Caribbean. While some countries have banned crypto assets outright given their risks, this approach may not be effective in the long run. Instead, the region should focus on addressing the drivers of crypto demand, including citizens’ unmet digital payment needs, and promoting transparency by recording crypto asset transactions in national statistics.