The International Monetary Fund (IMF) continues to issue warnings about bitcoin (BTC) and cryptocurrencies.
Tobias Adrian, Director of the Monetary and Capital Markets Department of the IMF and Rhoda Weeks-Brown, director of the Legal Department of the organization, published a report in which, among other things, they assure that it is “unlikely that cryptocurrencies will become fashionable in countries with stable inflation, fixed exchange rates and credible institutions.”
In this sense, they explain that this is because, both households and companies would have “few incentives” to save or set prices in a cryptocurrency like bitcoin, even if governments establish the cryptoasset as a legal tender.
They ensure that bitcoin and the rest of cryptocurrencies are volatile and not tied to the “real economy” , points out the document entitled “Cryptoassets as national currency? one step too far ”, published on July 26.
The financial body suggests that, for countries with unstable economies, reserves should be in dollars or euros , because they are recognized currencies in the world. In his opinion, that “would be more attractive than adopting a cryptoactive”.
Although in the text they do not make explicit mention of El Salvador and its Bitcoin Law, approved on June 8, the IMF with this new report, sends a message similar to the one it made to the Central American country when it announced the adoption of the cryptocurrency, as reported by CriptoNoticias.
“The adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal problems,” said Gerry Rice, a spokesman for the IMF at the time.
Negative impacts of cryptocurrencies, according to the IMF
In the document, the IMF reiterates the slogan that adopting bitcoin affects the “macroeconomic stability” of a nation.
In that sense, they say that maintaining a duality in the prices of goods and services with fiat money and cryptocurrencies, “would take time away from the hog ares and companies trying to choose and resources choosing what money to save instead of participating in productive activities ”.
The IMF considers that cryptocurrencies could be seen as a “shortcut” , because some are “safe, easily accessible and inexpensive for carry out transactions ”but who believe that“ the risks and costs outweigh the possible benefits. ”
In another part of the text, they also make an obvious reference to El Salvador, when they warn that central banks “cannot set interest rates in a foreign currency” . It is worth remembering that the Central American country lacks its own currency and uses the United States dollar.
In that sense, they say that when a nation adopts a foreign currency “it expects to align its economy and its interest rates with the external economic cycle ”. The agency believes that this is not possible with the adoption of bitcoin or another cryptocurrency.
Officials in the report add that, if all prices of goods and services were set in bitcoin, “they would fluctuate. enormously, following the vagaries of market valuations. ”
Not everything is bad for the IMF regarding bitcoin
Given the negative aspects pointed out about bitcoin by the IMF, also rescue certain advantages of its use .
In this regard, they point out that cryptocurrencies have the possibility of providing help to people who do not They are included in the banking systems of the countries, allowing them fast payments. However, they would not serve “to store value.”
They also believe that governments should promote new digital forms of money, but always safeguarding stability, efficiency, equality and environmental sustainability, adds the IMF.