The IMF again commented on BTC, did it change its mind?

In a new study, the International Monetary Fund returns to BTC, which is accused of being the currency that is chosen mainly for criminal purposes.

IMF again against BTC

In a new 19-page report released at the end of March, the International Monetary Fund again attacks the most important cryptocurrency and accuses it of usage by criminals, who can use it to launder the proceeds of their illegal trading.

The IMF report states:

“The anonymity of cryptocurrencies (where transactions require only digital identities) makes them a potential vehicle for illicit flows, including flows of corrupt proceeds. Cryptocurrency innovation has the potential to improve the efficiency and inclusiveness of the financial system and the economy in general, but crypto assets pose problems in terms of consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing.

The study also mentioned that cryptocurrencies are more prevalent in countries with higher levels of corruption.

The assumption, which seems quite obvious, given that in these countries, such as Venezuela, Nigeria, Kenya or Argentina, the circulation of currency is more complicated and the inflation rate is usually very high, which conditions naturally support the adoption of cryptocurrencies. .

For these reasons in particular, the IMF continues to urge clear and precise regulation of the cryptocurrency sector by the competent authorities. This is something that the sector itself eagerly awaits, which demands regulation to finally free the cryptocurrency world from this kind of regulatory limbo.

However, this is certainly not the first time that the most important international monetary authority has dealt with cryptocurrencies, often to warn of the risks involved.

Previous reports against El Salvador

In January this year, an international body asked the El Salvador government to reconsider its decision in September 2021 to declare BTC legal tender in the country. According to the IMF, this could pose a risk to the country’s financial stability and its already high external debt.

In December, Evan Papageorgiou, deputy head of the IMF division said for CNBC:

“The cryptoecosystem has grown significantly… Some interesting stress tests have taken place and many players in the industry lack sound operational, management and risk procedures.”

The need for precise regulation, strongly emphasized in this last March report, was expressed by the IMF as early as October, when the market exceeded 2 trillion, and said that many new cryptocurrencies lacked good governance and risk-taking procedures. Three members of the fund, Dimitris Drakopoulos, Fabio Natalucci and Evan Papageorgiou, said in another report:

“There are several high-profile cases of theft of client funds related to hacker attacks. These incidents have not yet had a significant impact on financial stability. However, as crypto assets become more mainstream, their potential in terms of potential implications for the wider economy is likely to grow. ”