February 26, 2023

IMF Warns of Using Crypto as Legal Tender

IMF Warns of Using Crypto as Legal Tender Featured Image

The International Monetary Fund (IMF) warned of making cryptocurrencies legal tender, a move which sparked strong opposition from the crypto community on social media.

On February 23, the IMF executive board endorsed its crypto asset policy framework, titled “Elements of Effective Policies for Crypto Assets,” which had nine principles, including not granting crypto assets official currency or legal tender status, Cointelegraph reported.

In its framework, the fund said: “the widespread adoption of crypto assets could undermine the effectiveness of the monetary policy.”

The IMF has opposed the use of crypto as legal tender well known, especially since El Salvador adopted Bitcoin as its official currency in September 2021, calling for adopting greater crypto regulation.

Meanwhile, the crypto community on Twitter expressed their disagreement with the IMF’s discrediting crypto as a legal tender. They claimed that the IMF does not want to accept BTC because they do not want any kind of competition. Another member of the community said that the governments can skip their debt slavery to the central banks by adopting Bitcoin, therefore, the IMF does not prefer that.

They also expressed their happiness that some countries had adopted crypto as a legal tender like El Salvador and became independent of the IMF. The IMF prefers central bank digital currency rather than cryptocurrency. It announced in September that it was working on an interoperable CBDC platform.

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