The International Monetary Fund, IMF, published a article titled “Global regulation of cryptocurrencies must be comprehensive, consistent and coordinated” on Thursday (9). As the title implies, the organization wants to combat cryptocurrencies in a coordinated manner.
The publication comes a day after the United States brought together representatives of the cryptocurrency industry to try to update its guidelines regarding this new sector that does not fit neatly into any previous regulation.
Among the greatest fears of the IMF is the popularization of cryptocurrencies in countries whose economies do not have any forecast of improvement in any term, short or long. Making access to cryptocurrencies, now used as an escape from inflation, increasingly difficult.
Cryptocurrencies are destabilizing, says IMF
Two weeks after warning El Salvador that the country should not use Bitcoin as a currency, the IMF has returned to attacking cryptocurrencies. The report says they can pose risks to financial stability, particularly in countries with weak economies.
The text expresses that the price of cryptocurrencies is not the only challenge to be faced, citing possible external problems such as the security of exchanges that allow the purchase and sale of these assets, as well as investor safety and also risks related to stablecoins, which can work without full ballast.
“Furthermore, in emerging markets and developing economies, the rise of cryptocurrencies can accelerate what we call ‘cryptonization’ — when these assets replace the national currency and circumvent exchange restrictions and management measures”
In other words, the IMF wants an individual living in Turkey to see his money lose all its purchasing power, without being able to convert your own money to another healthier currency like Bitcoin. The motivation for this claim is that cryptocurrencies can be destabilizing, as if the economies of countries like Turkey and Venezuela were somehow stabilized.
attack must be coordinated
With the popularization of cryptocurrencies, several countries are taking different steps to adapt to this new era of digital payments.
On the one hand China, where its citizens cannot access Wikipedia, has banned everything related to cryptocurrencies, on the other hand, El Salvador has adopted Bitcoin as its legal currency, in addition to converting part of its reserves to BTC, which according to own IMF, its economy is doing very well. In the middle term, we have countries like the US, where the sector is expanding slowly due to a lack of greater regulatory clarity.
Because of this difference in opinions between countries with a more or less strong state, the IMF indicated that coordinated measures need to be taken. Otherwise, stablecoin companies can move to other countries, as well as miners that left China for the US, Kazakhstan and Russia.
“Uncoordinated regulatory measures can facilitate potentially destabilizing capital flows.”
Finally, this is yet another desperate attempt by the IMF that fears that countries with broken economies will seek growth by using currencies without the intervention of corrupt governments. In other words, it is a request for countries to work in a coordinated manner so that the IMF can continue to lend money and charge interest on them.