No Legal Status For Cryptocurrencies!

The legitimacy of cryptocurrencies continues to be debated. Although countries have made different decisions on this issue, America and Europe are still unable to make a concrete change in the law on this issue! 

Finally, an employee in America was sentenced to 10 months in prison for sharing information about the cryptocurrency company he worked for with his friend and brother. 

IMF Strongly Opposes Cryptocurrencies

Recently, the IMF recommended in its 9-point action plan on cryptocurrencies that countries should not be granted legal status for cryptocurrencies. If you recall, the IMF had made alarming announcements in previous cases that cryptocurrencies should not be granted legal status. It is believed that this situation has more than one reason. 

No Legal Status For Cryptocurrencies IMF

What Are The Reasons For The IMF’s Concern?

First of all, it can be said that the IMF believes that any development of cryptocurrencies will pose a major problem for the existing banking system. Apart from that, the IMF’s statement leads to cryptocurrency moving into the unknown to a worrying extent. 

What Does The Action Plan Include?

The first article of the IMF plan calls for Bitcoin and other cryptocurrencies not to be granted legal tender status.

The recommendation for IMF member countries focuses on the principle of “preserving monetary sovereignty and stability by strengthening the monetary policy framework and not treating cryptocurrencies as official money or legal tender.”

Unfortunately, this does not seem to be possible in the medium and long term. In this process, many official institutions, especially in El Salvador, have granted privileged status to cryptocurrencies or are preparing to do so.

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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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