IMF Warns That Adoption of Cryptocurrency As Legal Tender Is Inadvisable

The International Monetary Fund (IMF) is confident that cryptocurrencies such as bitcoin carry significant risks. Making them equivalent to the national currency is inadvisable. The IMF announced this on its Twitter page.

The IMF reiterated that, in most cases, the risks and costs outweigh the potential benefits of legalizing cryptocurrencies, and the high volatility of cryptocurrencies is also noted. As an example, the IMF cites the cost of bitcoin, which in April 2021 was $65,000, and two months later it decreased by half.

The IMF is confident that crypto assets are unlikely to gain popularity in countries with stable inflation, exchange rates and reliable financial institutions. The Cuban government announced the recognition of cryptocurrencies as an official means of payment at the end of August 2021. In June, El Salvador's authorities were the first in the world to allow bitcoin to be used as legal tender in the country.

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