IMF Is Against The Usage Of Cryptocurrencies As Payment

A fresh statement about cryptocurrency assets is released by the IMF Board of Directors. He revisits the fundamental concepts of the ecosystem in a freshly released document, emphasizing his observations. Yet, several details can cause fans of digital assets to have different perspectives.

There is a lot of ink flowing as a result of the growth of cryptocurrencies. Even if more and more individuals are getting involved, other organizations, like the International Monetary Fund (IMF), have different perspectives. The last straw that broke the camel’s back was El Salvador‘s introduction of Bitcoin (BTC) as legal cash in September.

Releases its Research Regarding Digital Assets

In response to the widespread nature of these assets, the IMF released a paper outlining nine guiding principles on February 23, 2023. They deal with matters of law, macro-finance, regulation, and global coordination.

The first tenet relates to the acceptance of cryptocurrencies as money. The IMF contends that digital assets shouldn’t be given legal standing, much less the position of legal tender. The IMF Board of Directors approved the paper after reviewing it on February 8 and believes that the IMF may act as a thought leader in the adoption of cryptocurrencies.

IMF Is Against The Usage Of Cryptocurrencies As Payment

Not All Digital Assets are Condemned by the IMF

Not all digital assets are immediately condemned by the IMF. There are several sorts of assets, according to Kristalina Georgieva, the Managing Director of the IMF, who said this last year. She believes that compared to cryptocurrencies that are not backed by any financial institutions, stablecoins, and CBDCs carry less risk.

As a result, each form of asset’s issuers must accept accountability. The IMF said in September 2022 that it was developing an open CBDC platform. According to them, central bank digital money would be the greatest choice if cryptos were to be promoted.

The IMF advises carrying tweezers while dealing with Bitcoins. They contend that monetary stability and sovereignty must be safeguarded. Thus, the latter might suffer from a broad use of crypto assets.

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Austin Axel

Ever since I graduated from British Columbia's journalism major, I have strived to be a follower of real news. Thanks to a program that allowed me to do internships in many different places during my university years, I had the chance to observe how this job was not done correctly.

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