UNICEF expresses concern over mainstream crypto adoption

The United Nations has joined the list of global bodies expressing their concern over the rising crypto adoption levels. The United Nations Children’s Fund is looking to incorporate child safeguards that offer online protective measures to children.

The report from UNICEF titled “Prospects for children in 2022” looks into the effects of global trends such as crypto on the lives of children. The report assessed the effects of the adoption of cryptocurrencies on the lives of children.

UNICEF is concerned about growing crypto adoption

The report notes that by the end of 2021, the crypto sector had recorded an increased adoption rate. It noted that crypto was now mainstream in 87 countries. The report also added that most of these countries were now looking towards developing central bank digital currencies (CBDCs).

According to the report, the level of crypto adoption will grow in 2022.

A potential alliance between governments, large banks and investment firms against challenger banks and blockchain-based finance could arise in many countries.

The pandemic has also been attributed to the growing levels of cryptocurrency adoption. The UNICEF report added that the economy had a high chance of recovering despite the economic effects caused by the pandemic.

UNICEF said that the developments in the crypto sector would see the local and global frameworks evolve. As developments in the sector unfold, the organization noted: “the implications for children hang in the balance.”

Despite the risks coming from the crypto space, UNICEF noted that benefits in the sector were also present. The mentioned benefits include bringing efficiency in remittances and transparency in the financial sector.

Need to protect children

The United Nations warned about the risks of an unregulated crypto regulatory framework. Lack of regulations in the sector affects the financial wellbeing of children, causes instability in the financial sector and affects government revenues.

Moreover, the crypto space also poses a threat to the financial system as it can cause unregulated transactions. The anonymity of the sector also increases the risk of using cryptocurrencies in child trafficking, sexual exploits, child abuse and financial extortion. Therefore, UNICEF said it was the right time to use cryptocurrencies to protect children.

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