cryptocurrencies Although it has been in our lives for a long time, it is still discussed. While many see these digital assets as the money of the future, few people what they described as fraud and prank He wants crypto banned. So much so that this debate has divided many countries in the world. Finally, the IMF, one of the world’s leading monetary authorities, announced its opinion on cryptocurrencies.
The International Monetary Fund (IMF) has warned that cryptocurrencies should not be given legal tender or official currency status. “Elements of Effective Policies for Crypto Assets,” published Feb. In an article entitled, the IMF states that such a move is a He warned it could have a negative impact on the nation’s monetary sovereignty and stability.
The IMF’s report addresses nine key elements that nations and central banks should consider when creating effective policies for cryptocurrencies. He suggests that granting cryptocurrencies legal tender or official currency status could increase the adoption and exposure of traditional financial institutions, leading to financial stability issues.
In addition, the IMF states that government revenues will be at high risk of variation if quoted in cryptocurrencies, and state-owned enterprises should not conduct cryptocurrency-related operations states. He suggests that where a cryptocurrency is given official status, governments should minimize its use for official payments and avoid guaranteeing crypto-fiat conversions.
The IMF also stresses the importance of establishing strong local institutions and policies to increase confidence in the traditional monetary system. The report suggests that establishing a solid Monetary Policy Framework (MPF) is the first step in establishing credibility. The IMF recommends that the MPF be transparent, coherent and consistent and help stabilize market expectations, prevent currency substitution and ensure the effectiveness of monetary policy.