IMF Says Bitcoin Threatens Economic Stability

Charlie Taylor

International Monetary Fund (IMF)Coingoback" srcset=" 700w, uploads/2022/06/Banner-Coingoback-700x150-1-300x64.jpg 300w, 150w, 585w" data-sizes="(max-width: 700px) 100vw, 700px " width="700" height="150" style="display: inline-block;In a publication this Monday (26), economists from the International Monetary Fund (IMF) warned countries against adopting Bitcoin as their national currency. Its renowned economists, Tobias Adrian and Rhoda Weeks-Brown, argue that the widespread adoption of Bitcoin could lead to macroeconomic instability in a recent post. They argue that companies would have to spend significant resources to integrate a cryptocurrency rather than focusing on productive things. In addition, prices would fluctuate a lot due to Bitcoin's high level of volatility. Adrian and Rhoda Weeks-Brown also point to widespread crime and fraud in the cryptocurrency market:

“Families and businesses can lose wealth through large swings in value, fraud or cyber attacks. Although the technology underlying cryptoactives has proven to be extremely robust, technical failures can occur. In the case of Bitcoin, the resource is difficult because there is no legal issuer.”

Environmental sustainability was also among the main concerns raised by the IMF in a publication on the official blog. El Salvador, a tropical nation in Latin America, became the first country to adopt Bitcoin as its official currency alongside the US dollar. the IMF – which is negotiating a $1 billion loan to El Salvador – was quick to criticize the measure. According to a recent poll, 96% of Salvadoran businessmen opposed the mandatory acceptance of Bitcoin and protests were conducted in the country.Read too:Buy and sell Bitcoin and other cryptocurrencies on Coinext
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