IMF warns against using crypto assets like bitcoin as legal tender tool

The International Monetary Fund (IMF) has warned against accepting cryptocurrencies such as bitcoin as legal tender instruments. Given the many risks and costs involved, the IMF does not consider crypto assets to be national currency.

IMF warns of risks in adopting cryptocurrency as national currency
The International Monetary Fund (IMF) published a blog post on Monday discussing the issue of the cryptocurrency as a legal tender. “Are cryptocurrencies as national currencies? It’s a step too far, ” wrote Tobias Adrian, financial adviser and director of the IMF’s monetary policy and capital markets division, and Roda Wix-Brown, general counsel and director of the IMF’s legal department.

The message makes no mention of El Salvador, the Central American country that recently accepted bitcoin as legal tender along with the US Dollar. Writers wrote:

As a national currency, cryptocurrencies, including bitcoin, contain significant risks to Macro Financial Stability, Financial Integrity, consumer rights protection and Environmental Protection.

Acknowledging the benefits of basic crypto technologies, IMF executives insisted that governments “must take steps to provide these services … experimenting with the national currency’s crypto network is a practical shortcut.”

Directors, however, a stable economy, people of crypto assets “very little incentive to price or store”, since they don’t believe that crypto assets will be absorbed; less stable economies “reserve currencies such as the dollar or the euro internationally recognised”prefer to use.

However, crypto assets” will be used as a means to pay for cashless people, but not to store value, “he thought, stressing that they” will be immediately exchanged in real currency when they are taken.”:

Real currency, on the other hand, may not always be easily accessible and easily convertible. Furthermore, laws in some countries prohibit or restrict payments in other forms

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