Speaking at a digital currency conference in Seoul, on Thursday, Georgieva highlighted the potential threat posed by widespread crypto adoption, citing concerns about its impact on macro-financial stability.

Georgieva said effective regulation was essential to prevent disruptions in monetary policy transmission, capital flow management measures, and fiscal sustainability, particularly in the face of volatile tax collection.

“Our goal is to make a more efficient, interoperable, and accessible financial system by providing rules to avoid the risks of crypto, and infrastructure by leveraging some of its technologies,” Georgieva said at the joint conference with the South Korean government and central bank.

She added that, “Rules are not meant to return us to a pre-crypto world, nor to squash innovation.