The International Monetary Fund or IMF is a global organization with 190 member countries. The financial organization works as a loaning enterprise for the states that are coming up short with their economic development budgets. The IMF, in the past, has shown a visible antagonism towards cryptocurrencies.
When Southern American nation El Salvador adopted Bitcoin as a legal tender, IMF executives criticized it by calling it an interesting experiment. However, recently the international loan shark has claimed that cryptocurrencies are no longer a threat to traditional economic development, pointing out the massive liquidity of positions and reserves.
In addition to marking down cryptocurrencies as a threat to the economy, IMF has also issued statements regarding the deteriorating conditions around the world. The global loaner claimed that the issues like recession and inflation storm are heightened and increased due to factors like COVID and the Russian war against Ukraine.
IMF has also published a recent report on the matter, as noted by several media outlets. The report suggests that Bitcoin is a type of investment option that is independent of the existing market forces like stock and bonds. Since Bitcoin can act independently from centralized banking systems, it has become a safer way for consumers to place their investments into.
Impact of CBDCs on the Global Economy
IMF has been advocating strongly for keeping the countries that have their financial loans and backing to refrain from adopting cryptocurrencies. However, recently big cryptocurrency projects like Celsius, Three Arrow Capital, and Terra USD have been under fire in the ongoing bear market. With the recent changes, it seems that IMF has suddenly changed its stance on the crypto market rather abruptly.
The recent report issued by IMF has also included a comment for the CBDCs. Countries like China are fast-tracking their CBDC projects; however, it seems that IMF has also developed a friendly stance toward centralized and decentralized digital currencies.
The report by IMF analysts suggests that due to energy conservation properties, CBDCs and cryptocurrencies can be a useful addition to the growth and development of the economy and provide an alternative payment method other than debit and credit cards.