The International Monetary Fund (IMF) said it did BTC the official currency of the country “could be dire”.
International Monetary Fund disagrees with El Salvador’s approach
The reference to Salvador seems quite obvious, although it is not directly mentioned in the IMF blog post.
In fact, IMF Marketing Director Tobias Adrian and General Counsel Rhoda Weeks-Brown said that BTC could be a panacea for high-inflation countries and could help people who have a bank account, but point out that it could also bear great risks.
According to the IMF, there is a risk that prices will be volatile because cryptocurrencies are highly volatile and anti-money laundering and anti-terrorist financing measures will not be followed. And he adds:
“If the prices of goods and services were in real currency and in cryptocurrency, households and businesses would waste time choosing which money to hold, as opposed to productive activities. Government revenues would be exposed to exchange rate risk. “
Adrian and Weeks-Brown also pointed out the risks to the environment, in line with the now well-known objection to BTC regarding energy consumption from mining and Proof of Work, the consensus mechanism on which the BTC blockchain is based.
However, it is also clear that the International Monetary Fund, which aims to promote monetary cooperation around the world, cannot be 100% enthusiastic about something as decentralized as the BTC.
However, it seems to emphasize the IMF’s fear of BTC volatility, and the note goes on to say “huge fluctuations in cryptocurrency prices”.