The IMF Is Worried About Ongoing Crypto Use

BitcoinThe IMF Is Worried About Ongoing Crypto Use


The International Monetary Fund (IMF) is worried about all the bitcoin love and adoption that’s occurring all over the world. The agency feels that all this bitcoin usage bears some level of danger to the world’s standard financial systems.

The IMF Warns About Further Bitcoin Usage

Interestingly, the IMF recently expressed this concern directly to El Salvador, a Central American nation that declared bitcoin legal tender back in September of last year. Now in its seventh month of pushing the bitcoin wheels, the nation appears to be doing quite well for itself, and the IMF practically got on its knees and begged El Salvador to give up all digital currency ambition in the future, claiming that there were sure to be risks and repercussions.

Nayib Bukele – the president of El Salvador – laughed at this and gracefully gave the finger to the financial agency. Now, the IMF is asking the world to give up bitcoin, not just El Salvador, claiming that standard fiat currencies like the yen, the euro, and USD are at risk of being overtaken or overthrown in some way.

In addition, the IMF says that crypto bears too many risks, as it’s been witnessing in Ukraine following the Russian invasion back in February. The agency explained in a statement:

Repercussions of the Russian invasion of Ukraine and ensuing sanctions continue to reverberate globally and will test the resilience of the financial system through various channels, including… acceleration of cryptoization in emerging markets, direct and indirect exposures of banks and nonbanks, and possible cyber-related events.

Ukraine has seen a huge number of crypto-based donations following the Russian invasion. This money is allegedly being used to boost the region’s military and give soldiers the weapons, fuel, and supplies they need to do their duties and defend themselves.

However, the IMF also says that the number of risks surrounding crypto have increased since the early days of the coronavirus pandemic. Crypto trading volumes have been skyrocketing ever since, largely because people have lost trust in standard financial systems given rising inflation rates and the excess stimulus measures that have been taken which have resulted in excess money printing.

Many now see bitcoin and cryptocurrencies as hedge tools; items that can keep their wealth solid and stable during times of economic strife. The IMF also says that crypto trading in Russia has surged in recent months following the implementation of sanctions on Russia by the United States and its various allies. It appears with the fall of the ruble that many Russians now see crypto as the ultimate way to solidify their wealth.

Making Sure the Sanctions Work

Not long ago, Treasury Secretary Janet Yellen commented:

We are monitoring any attempts to use crypto to evade our sanctions, and we have ample enforcement authority which we won’t hesitate to use.

Tags: bitcoin, El Salvador, IMF



Learn more

Latest news

Charles Hoskinson Says It’s “Crime” for Ethereum Community to Discuss Cardano

Alex Dovbnya Input Output's Charles Hoskinson started another heated debate with Ethereum community on Twitter Input Output CEO Charles Hoskinson...

LUNC Price Skyrockets 25% in 5 Minutes as Binance Announces Major Update on Burning

Gamza Khanzadaev Major crypto exchange provides incredible update on burning mechanism of LUNC As we have just learned, Binance, one of...

Twitter whistleblower has likely sparked FTC probe: experts

Whistleblower Peiter “Mudge” Zatko’s explosive accusations about security concerns at Twitter are almost certain to have sparked a...

FTX Wins Bid to Buy Voyager Digital's Assets

FTX US's bid is valued at approximately $1.422 billion, according to a Voyager press release late Monday Eastern...

IOTA to Feature New Token as Price Spikes with 900% Volume Inflow

The IOTA (MIOTA) price is seeing modest gains against the backdrop of the other crypto assets, which are recording...

Must read

Charles Hoskinson Says It’s “Crime” for Ethereum Community to Discuss Cardano

Alex Dovbnya Input Output's Charles Hoskinson started another heated...

LUNC Price Skyrockets 25% in 5 Minutes as Binance Announces Major Update on Burning

Gamza Khanzadaev Major crypto exchange provides incredible update on...

Twitter whistleblower has likely sparked FTC probe: experts

Whistleblower Peiter “Mudge” Zatko’s explosive accusations about security...

You might also likeRELATED
Recommended to you