UN Assistant Secretary-General Kanni Wignaraja issued a statement advocating for the exploration of how cryptocurrencies, central bank digital currencies (CBDCs), and stablecoins can promote human development.
UN Assistant Secretary-General Discusses Cryptocurrency Use cases
Wignaraja noted the surge in Bitcoin and Ethereum, which reached a peak market value of $3.9 trillion in December as alternative investments. As a result, she recommended investigating whether some of these funds could be used to support education, healthcare, skills development, and job creation.
Drawing on blockchain’s inherent transparency, Wignaraja advocated for its use to strengthen accountability and reduce corruption.
“It is recommended that the United Nations Development Program (UNDP) assist countries in establishing a CBDC regulatory framework,” she noted.
In her blog, Wignaraja also highlighted how CBDCs can help include unbanked populations in the formal financial system, boosting economic inclusion and expanding access to financial services. She compared this to several CBDC trials currently taking place in Asian countries.
Additionally, she pointed out that during economic crises or conflicts, stablecoins could help preserve liquidity. She acknowledged the uncertainty around using digital currencies in sovereign bonds and debt restructuring but stressed the importance of macroeconomic analysis, robust regulations, and global collaboration to assess how cryptocurrencies could support financing strategies for Sustainable Development Goals (SDGs).
She also called for eco-friendly cryptocurrency mining practices and encouraged research into sustainable mining technologies to ensure digital finance grows without harming the environment.
Lastly, Wignaraja underscored the need for cryptocurrencies to support human development without compromising financial stability. As a solution, she proposed testing cryptocurrency funds under strict safeguards to evaluate their impact.
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