Should the IMF be open to developing countries suffering from inflation? “Bitcoin was created for the Global South”
There’s little sunshine in the crypto winter, so it’s odd to present another “legal Bitcoin” argument. That is the will or should that any country – other than El Salvador and the Central African Republic (CAR) have made – announced. Bitcoin
The official national currency?
The International Monetary Fund (IMF) reiterated this point last week in a policy action brief highlighting Nine cryptocurrencies, which 190 member states should adopt First on the “no” list is adding crypto as a “legitimate bid” or, as assessed by a committee of multilateral lending agencies:
“In general The directors agreed that the asset should not be offered. cryptocurrency It is the official currency or legal status to protect sovereignty and financial stability.”
It may not be fair to ask questions back using But the IMF has the right to warn member banks about cryptocurrencies. Are cryptocurrencies or not? and if so What is missing in the personal cryptocurrency component that makes it unsuitable as an official national currency? It may be Bitcoin’s well-recorded volatility, but if it isn’t, cryptocurrency The oldest in the world may continue to evolve into a new role as a help script. Maybe in the next few years when more people use it. More liquidity and less showing. Price difference?
The IMF must be careful
“The IMF’s mandate is to promote global economic stability and growth. It therefore makes sense that the IMF recently advised countries to refrain from offering legal status for crypto assets, which by design are often disturbing by nature,” said Gavin Brown, associate professor of technology. “Such disruptions could present a host of threatening opportunities, but the IMF will have to be more cautious in the face of such open uncertainty,” a University of Liverpool finance officer told Cointelegraph.
“There are good economic reasons why most countries don’t want to adopt it. “Cryptocurrencies like BTC are local scripts,” James Angel, an associate professor at the University of Georgetown McDonough School of Business, told Cointelegraph. fiat currency given”
While crypto enthusiasts can impalve governments to print money incessantly for paper deficits. “Sometimes all it takes is printing ‘Angel’ money, like in a recession or a pandemic. The trick is, don’t type too much, that doesn’t happen in the plague.
‘Bitcoin Made for the Global South’
In IMF policy papers, there are many arguments for its position over crypto volatility. It could expose government revenues to foreign exchange risk. Domestic prices “may experience high volatility,” as businesses and families spend time deciding whether to hold fiat or BTC “rather than engaging in productive activities.” Allowing Citizens to Pay Taxes in Bitcoin and More
The adoption of crypto as a legislation can affect government social policy objectives, the IMF said, “especially for tokens that are not supported due to high price volatility, which can affect household “more poor”
But the question remains Although the IMF’s arguments are valid and maintained in most situations, But is there no exception? And what about developing countries suffering from inflation like Turkey?
“Bitcoin was built for the Global South,” Ray Youssef, co-founder and CEO of Paxful and co-founder of the Bitcoin Foundation for Global South, told Cointelegraph. “In the west Much attention has been paid to Bitcoin’s dubious volatility. That’s because the world operates on the dollar. and the West is protected from global inflation. Turkey has over 50% inflation and Nigeria has Over 20% Inflation – In these economies, Bitcoin is a strong bet.
But even in such cases, it’s not easy. Syedur Rahman, a partner at law firm Rahman Ravelli, told Cointelegraph: It is effectively used as a legal payment in developing countries. The government will have to invest heavily in technology and technology infrastructure.” Appropriate provisions. “If possible, it will help with financial liquidity.
“Accepting foreign currency/hard currency or monetary standards is the last resort to dealing with high inflation,” commented Angel. “But even weak governments need the power of printing presses. because there is a tax mechanism to pay the military” .