IMF Urging Global Regulators for Supervision of Cryptocurrencies
You may have read the news about IMF urging El Salvador to stop recognizing Bitcoin as a legal tender, stating that adoption of the cryptocurrency officially showed big risks for the stability and uprightness of the country's financial system.
Not to forget, the President of El Salvador, Nayib Bukele looking for a financial aid of more than $ 1 billion from IMF, is planning to raise money by selling bonds that are linked to the biggest cryptocurrency of the world.
According to Adrian, that some developing economies of the world as well as the emerging markets may face critical risk in a move of replacement of their existing established currencies replaced by the cryptocurrencies.
We have now International Monetary Fund (IMF) senior official speaking about the immediate and acute risks that are being posed by the public using cryptocurrency in place of traditional currencies.
The relation between the performance of crypto and other financial assets in the developed countries like the government bonds etc are putting the IMF in trouble.
The global regulators have been advised by the IMF for establishing a comprehensive approach towards the supervision of cryptocurrencies. That seems an intimidating task as the cryptocurrencies are growing at a good speed and are moving into the mainstream finance.
I have been sharing about this issue before like how countries with struggling economies may face sanctions from FATF if they try to legalize cryptocurrency. And now we are seeing the IMF is influencing El Salvador for drawing back their decision of making Bitcoin as a legal tender.
It's an interesting situation because at one place we have the struggling economies that are looking for the uplift of their economy and some may be thinking towards crypto while on the other hand, they may face sanctions from IMF, FATF etc for legalizing cryptocurrencies in their countries.
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