The IMF has abruptly changed its rhetoric regarding cryptocurrencies 1 min
Date: 2023-06-25 Author: Karina Ziganova Categories: IN WORLD
The International Monetary Fund believes that the ban on cryptocurrencies may be ineffective and significantly affect the development of new technologies. Recall that just a few months ago, some of the IMF directors stated that "direct bans on the use of digital assets should not be ruled out."
"Although several countries have completely banned cryptocurrencies, given their risks, this approach may not be effective in the long run," the international financial institution said in a statement discussing interest in central bank digital currencies (CBDCs) in Latin America and the Caribbean. "The focus should be on mitigating risks and taking advantage of the potential benefits of technological innovation associated with crypto assets."
This position is in stark contrast to the IMF's comments made in February 2023. At that time, the fund called on countries that are actively implementing cryptocurrency as a means of payment for a "coordinated response" to fears that digital assets could undermine the global monetary system.
"Although several countries have completely banned cryptocurrencies, given their risks, this approach may not be effective in the long run," the international financial institution said in a statement discussing interest in central bank digital currencies (CBDCs) in Latin America and the Caribbean. "The focus should be on mitigating risks and taking advantage of the potential benefits of technological innovation associated with crypto assets."
The IMF believes that countries should focus on addressing the drivers of demand for cryptocurrencies, including citizens' unmet needs for digital payments, as well as increasing transparency by recording transactions with crypto assets in national statistics.
They told what is wrong with CBDC and why the digital dollar is not a panacea, in a special material BeInCrypto
This position is in stark contrast to the IMF's comments made in February 2023. At that time, the fund called on countries that are actively implementing cryptocurrency as a means of payment for a "coordinated response" to fears that digital assets could undermine the global monetary system.
According to an IMF study, the pace of mass adoption of cryptocurrencies in Latin America and the Caribbean has accelerated significantly: at the moment, Brazil, Argentina, Colombia and Ecuador are among the top twenty in terms of the introduction of digital assets in the world. In 2021, El Salvador made headlines by granting Bitcoin (BTC) legal tender status.Other countries in the region are making significant progress in implementing CBDCs to increase financial inclusion or reduce the cost of cross-border payments, the IMF said.
