IMF Director Kristalina Georgieva: "Bitcoin is not a threat to the US dollar"
Date: 2024-01-16 Author: Dima Zakharov Categories: BUSINESS
Bitcoin as an Asset, Not a Currency
In her interview, Kristalina Georgieva made it clear that she views cryptocurrencies, including Bitcoin, as a distinct asset class rather than a form of currency that could challenge the US dollar's supremacy. She pointed out the size of the American economy and the depth of capital markets as factors that make it unlikely for Bitcoin to replace the US dollar.
The Importance of Backing
Georgieva explained that the security of investments in cryptocurrencies depends on whether they have adequate backing. If cryptocurrencies have proper backing, they can be considered safer investments. However, when there is no such backing, investments become riskier. She likened cryptocurrencies more to capital management funds than actual currencies.
Skepticism Towards Bitcoin's Mass Adoption
Contrary to some industry insiders' beliefs, Georgieva expressed skepticism about the recent approval of Bitcoin spot ETFs in the US leading to mass adoption of the cryptocurrency. She believes that such a scenario is still far from reality, making such discussions premature.
Diversification but No Competition with the Dollar
Georgieva emphasized the importance of diversifying investments but assured that there is no need to worry about Bitcoin competing with the US dollar. While advocating for diversification, she mentioned that she doesn't rush to convert her dollars into another currency, reaffirming her confidence in the dollar's stability.
Calls for Clear Regulation
In December, Georgieva called on international regulators to establish clear rules to reduce risks associated with digital assets. She stated that widespread adoption of crypto assets could undermine macro-financial stability, which contradicted her previous statements.
