Cryptocurrencies are emerging and play a vital role in all fields and industries supporting large businesses as well. Many new entrants are jumping into the crypto space and are very eager to invest their assets into the digital market. Through this, numerous countries are also inspecting to accept the crypto service for its people. Even though the crypto industry is popular, some institutions and organizations are opposing crypto adoption. One such organization is the IMF.
IMF Warns Crypto Services
The International Monetary Fund (IMF) is against the acceptance of adopting digital currency as a legal Tender of the nation. More so, the organization is far from using crypto currencies even though it is beneficial. Besides, the IMF thinks more about the risks and costs involved in virtual currency.
Recently, the IMF officially posted a tweet against the use of Bitcoin and other crypto assets as national currency. The organization is totally not willing to elevate digital currency as a daily currency. Moreover, the IMF states that digital currencies can raise issues due to price fluctuations, improper tax policies, and stability in the economic state.
Besides, the IMF released a Blog reporting the issue of crypto adoption. It feels that there can be some legal problems apart from its security concerns. In addition, the IMFBlog says,
“Crypto assets encourage to money laundering, fund terrorism, and evade taxes. This can cause risks to a country’s financial system, fiscal balance, and relationships with foreign countries and relevant banks.”
Bitcoin as Legal Tender
Among all the cryptocurrencies, Bitcoin remains at the top position and the toughest competitor to all other digital assets. In recent times, Bitcoins are accepted in many countries and businesses as payment options and also as national currency. Being the prominent margins for financial sectors, bitcoin users are increasing beside many challenges in the market.
In June, the Bank of America revealed it would adopt Bitcoin as legal tender in El Salvador. Notably, the pride of being the first nation to accept Bitcoin (BTC) as legal tender goes to El Salvador. Many crypto users are happy to access digital payments via bitcoin as it helps to reduce volatility and transaction fees.
Thus, the IMF strongly says that because El Salvador accepts Bitcoin it is not mandatory for other countries to accept. Moreover, the organization is opposing all the calls in favor of bitcoin rising from other countries, especially Latin America. Therefore, the IMF is against bitcoin and other digital currencies to be used as mandatory means of payment for everyday purchases.
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