UNICEF warns against child safety risks associated with crypto-transactions
The increase in crypto-adoption across the globe has irked some organizations. The latest to express its reservations about the industry is the United Nations Children’s Fund (UNICEF). The organization has called for greater regulation of crypto-markets that would also incorporate child safety and protection.
In its “Prospects for children in 2022” report, UNICEF highlighted several financial and exploitative threats posed by cryptocurrencies. While examining the impact of global financial trends on the underage population, the organization noted that the heightened adoption of cryptocurrencies is “demonstrating both the promise of greater financial inclusion and the need for new child safeguards.”
Adoption of the nascent asset class might accelerate even further going forward, noted UNICEF, adding that 87 countries have already shown significant interest by the end of 2021. This has been further exacerbated by economic hardships posed by the COVID-19 pandemic over the past two years.
Moreover, the involvement of various governments in the sector has also painted a bullish outlook. Even as many regions are experimenting with their own CBDCs, an alliance could also be formed between “governments, large banks and investment firms against challenger banks and blockchain-based finance.” The report further noted,
“These developments will eventually require the emergence of national and international legal and regulatory frameworks. As we wait to see what direction these trends take us in, the implications for children hang in the balance.”
According to the organization, some of the potential risk factors to the well-being of children include financial instability and a dip in government revenue that private cryptocurrencies could
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