- The IMF associated that there is greater use of digital assets in “countries considered corrupt or with severe financial restrictions”, as may be the case with Russia today.
- The IMF noted that by cutting out intermediaries, cryptocurrency has the ability to wreak havoc on and undermine the existing financial infrastructure.
Although it is nothing new that the central and most important organizations in the world are seeking to discourage the use of cryptocurrencies and the message they use is to associate digital assets with crime. As if the fiat were a good money and the other bad.
The last person to refer to this was the International Monetary Fund (IMF). Given the expansion in the use and commercialization of digital currencies, one of the most recognized voices worldwide He took the floor to recommend that countries, especially underdeveloped ones, embark on the path of greater regulation of crypto asset trading.
Cryptocurrencies could wreak havoc on existing financial infrastructure
The IMF associated that there is greater use of digital assets in “countries considered corrupt or with severe financial restrictions”, as may be the case with Russia today, since Russian finances are paralyzed by the invasion of Ukraine and the Fund believes that there may be financing through different blockchains.
“By cutting out the middlemen, cryptocurrency has the ability to wreak havoc on and undermine the existing financial infrastructure.”, describes bicoinistmaking clear a position of ignorance of the IMF.
With this thought it could be that The IMF encourages countries to take stricter measures towards exchanges regarding their KYC guidelines that allow governments at some point to demand the information of each of their clients.
With this it is clear that centralized exchanges do not comply with the status of transparency and financial freedom that cryptocurrencies promote.
Crypto market growth a problem
In November of last year, according to CoinMarketCap, the global cryptocurrency market touched $3 trillion and it is believed that by 2026 that number will be above $4 trillion. Given this projection, many nations are working to regulate digital assets. Many of the actions taken are not to the liking of investors.
The IMF noted that this growth has created an investor frenzy which has been exploited by fraudsters to create ponzi schemes and perpetrate various forms of corruption.
According to a Fund study, crypto assets can be used to send “proceeds of corruption or bypass capital controls” in 55 countries. The survey, conducted by the German company Statista, as reported, had a field of study of 2,000 to 12,000 respondents per nation.
The explanations on why cryptocurrencies are used is as varied as the number of financial assets on the market. But they consider that in countries with strict capital controls, digital money can avoid paying taxes, for example.
The IMF said its “findings are noteworthy” but “should be interpreted with caution as a result of the limited sample size and unclear precision of the data.”
Effective regulation of crypto assets
Beyond associating cryptocurrencies with the illegal market and also targeting less developed countries, the IMF did not provide clear references and made no specific mention of any. Although it is clear where the message points: El Salvador, Russia, for example.
“The best strategy is not to fight, but to figure out how to regulate Bitcoin effectively. Residents of countries with a well-developed traditional banking sector may be less inclined to feel the need for cryptocurrencies“, stressed from the IMF.
Once again, cryptocurrencies appear as the bad guys in a story that has neither heroes nor villains. The message from the International Monetary Fund is clear and aims to discourage the use of digital assets in all parts of the world. Today, his concern seems to focus on the poorest countries.
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