IMF: Do not mistake cryptocurrency for money

The International Monetary Fund (IMF) has once again dismissed the idea that cryptocurrency is money and warned consumers not to make the mistake of believing that they can substitute crypto for FIAT payments.

Kristalina Georgieva, the Bulgarian economist and present chairwoman and managing director of the IMF spoke during a panel on Monday.

During her Money At A Crossroad address, Georgieva argued that cryptocurrencies posed a serious risk to global financial stability.

She pointed out how easy it would be to use these assets for the purposes of money laundering or terror financing. There has been a debate over the past months over whether cryptocurrencies, due to their transparent nature, can really be used to launder money.

Most crypto specialists have dismissed the idea altogether, but mainstream financiers believe otherwise.

Georgieva is de facto the latest in a string of prominent economists to advise caution on the use of cryptocurrencies. Her remarks are not an all-against stance, but rather a reminder that the IMF and central banks should do more to prepare for digital assets.

Earlier this year, Georgieva explained: “We’ve certainly seen an increase in the use of cryptocurrencies before this war, and we’ve seen it happen more in emerging markets than in others.”

Amid this increasing use of cryptocurrencies, Georgieva still believes that a central bank may have a better shot at issuing and regulating them and has repeatedly spoken about the advantages of Central Bank Digital Currencies (CBDCs).

The growing attention on the sector has made Georgieva hopeful that this may translate into proper governing policies that would underpin a more stable outlook on cryptocurrencies globally and shield consumers.

In the meantime, you can use your crypto to enjoy recreational activities such as online gaming at websites such as 1xBit, FortuneJack and Bitcasino.

Source

Updated: 04/19/2022 — 14:00