Should I use moisture resistant drywall in basement?

Green board is not necessary, but may not be a bad idea for the outside wall if you have a damp basement. Allow me to ask if the wall is built tight to the foundation,reason being is that the plastic will work but a better solution would be blown foam it will keep the cold air out and you should not have a problem with moisture. After thought most areas of the country require a building permit to do the work ask your inspector because he should be able to tell you what is the best for your area.