IMF: cryptos are dangerous!

Of course. The IMF has announced that cryptos are dangerous and even have some advice for all of us.

The International Monetary Fund (IMF) says crypto assets, such as Ethereum, are privately issued with significant risks. And “making them equal to a national currency is an inadvisable path.” Many people disagree.

Cryptos dangerous

Yes, that is really the view of the IMF. And there are not the least people there. The IMF is very modern today. Therefore has the agency now has a Twitter account. She tweeted about crypto assets last Saturday. And claimed they are privately issued, pose significant risks, and are not recommended for use as legal tender. The IMF wrote: “Privately issued cryptoassets such as Bitcoin carry significant risks. Making them equal to a national currency is an inadvisable shortcut.”

This is not new, because they wrote about it before on July 26th. Two of their legal advisers previously wrote a blog entitled “Cryptoassets as a National Currency? One step too far’. The advisors warned of the risks of Bitcoin’s legal tender, as El Salvador did. One of the concerns mentioned was that “monetary policy would lose momentum”. This is because “central banks cannot set interest rates for a foreign currency.” Or in other words, they have no control over it.

Do not agree with

Of course there was a reaction on the internet. On social media, it especially went wild, especially because the IMF called it Bitcoin “privately issued”. A Twitter user pointed out that the IMF “discredits Bitcoin (a public, open-source protocol) as a ‘privately issued’ asset. This is to discredit its legitimacy against national currencies, which are in fact privately issued.”

Some argued that fiat currencies carry more “significant risks” than cryptos. “Government-issued fiat assets such as the US dollar carry significant risks. Especially when lent by intergovernmental organizations with a history of bankrupt countries,” said one Twitter user.