The U.N. has called on governments to limit the availability of electronic funds, saying that the system has been widely abused to evade tax payments.
A new report from the U,N.
Commission on International Financial Reporting (CIFOR) suggests that, as of March 1, the world had just $9.8 trillion of available digital cash, and that this could grow to $17 trillion by 2019.CIFORE says the problem stems from the fact that most digital funds are issued in a variety of currencies that are difficult to track.
It suggests that governments should set up a system that could prevent the creation of digital money.
The report says governments should:Increase the amount of digital cash that can be issued;Require digital wallets to be registered in countries where they are accepted;Limit the ability of digital wallets and other digital payment channels to be used as a tax shelter; andCarry out a public audit to ensure that digital currencies are not being used for illicit purposes.
A recent report from Goldman Sachs Group Inc. found that digital wallets are used by criminals, counterfeiters and money launderers to evade taxes, and said that they could be a “significant source of funds for criminal activity in some countries.”
It also found that some governments have not had sufficient information to understand the risks of digital currencies and have “failed to properly manage their digital assets.”
The report urges governments to increase the availability and transparency of digital currency and also to develop rules and policies to regulate digital currencies.
In a blog post, the commission says governments must:Implement appropriate and effective measures to prevent the use of digital funds as a source of financing, including:Immediately introduce and implement appropriate measures to ensure the appropriate monitoring of digital asset holders, including through the use and use of appropriate mechanisms;