The International Monetary Fund (IMF) says crypto assets like Bitcoin are privately issued with significant risk, and “equating them to local currency is an inadvisable shortcut”. The crypto community disagrees.
IMF claims bitcoin is privately issued crypto with significant risks that is not recommended as legal tender
The International Monetary Fund tweeted about crypto assets on Saturday, claiming that they are privately issued, involve significant risks, and are not recommended for use as legal tender. The IMF wrote: “Privately issued crypto assets such as Bitcoin involve significant risks. Equating them to a local currency is an inadvisable abbreviation. “
The IMF’s tweet points to a blog post penned on July 26 by two of its legal advisors, Bitcoin.com News previously reported. In the blog post entitled “Cryptoassets as a national currency? A step too far, ”warned the authors of the risks of making Bitcoin’s legal tender, as El Salvador did. One of the concerns mentioned was that “monetary policy would lose its bite” as “central banks cannot set interest rates on a foreign currency”.
A lot of people on social media made fun of the IMF for calling Bitcoin “privately issued.” A Twitter user pointed out that the IMF “frames BTC (a public open source protocol) as a ‘privately issued’ asset in order to discredit its legitimacy to national currencies that are actually privately issued.”
Some argued that fiat currencies were associated with more “significant risks” than bitcoin. “Government bonds like the US dollar are associated with significant risks. Especially when they are on loan from intergovernmental organizations with a history of bankrupt countries, ”said a Twitter user.
A third Twitter user found that bitcoin and crypto compete as international currency reserves:
The IMF is getting nervous as companies and individuals diversify their assets into bitcoin and cryptocurrencies rather than their special drawing rights (SDR).
Some people have said that the IMF is becoming an irrelevant organization. DTAP Capital founder Dan Tapiero predicted, “The IMF will not exist in 10 years.”
What do you think of the IMF’s position on Bitcoin?? Let us know in the comment section below.
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