The International Monetary Fund (IMF) has warned against declaring cryptocurrencies such as BitCoin legal tender, saying it could directly incur significant costs to macroeconomic stability. The adoption of cryptocurrencies is being discussed in many countries around the world. In June, El Salvador, the smallest and most densely populated country in Central America, declared bitcoin a legal tender. On this, the IMF said through a blog in late July that making cryptoassets a national currency is a shortcut that cannot be advised because it poses a lot of risk to macro-financial stability, financial integrity, consumer protection and the environment.
Last month, a UK-based personal finance platform ‘Finder’ conducted a survey on 42 crypto experts from around the world. According to this, by the year 2050, global finance will cross bitcoin. Its acceptance has increased over the past few months and companies like JPMorgan, Goldman Socks, PayPal, Visa, Tesla, Apple, Amazon and Microstrategy have started accepting it. However, this year Tesla’s Elon Musk cautioned investors about crypto and said that their life savings should not be invested in it.
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These are the concerns about cryptocurrencies like BitCoin
- The Washington-based IMF works to promote monetary cooperation and secure financial stability around the world. In such a situation, there will be many problems regarding fairness and finance inclusion,
- The IMF says that the value of the official monetary unit should be stable enough so that it can be used for medium to long-term monetary liabilities.
- The IMF believes that banks and other financial institutions will have problems with the huge fluctuations in cryptoasset prices.
- According to the IMF, if the use of cryptoasset starts on a large scale, then if there is a big decline in it or if there is any fraud or cyber attack, then there will be a risk of losing the capital of many people in one stroke.
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This is the status of cryptocurrencies in India
Shivam Thakral, CEO of ByUCoin, told Finance Express Online that the approach to cryptocurrencies in India is completely different. In India it is not a legal tender but is seen as an asset class. According to Thakral, crypto is the best model in the asset class as crypto assets and national currencies coexist. Through crypto assets, such a worldwide payment system can be created in which a complete record of transactions will be done in a public ledger on a blockchain network. Thakral believes that transactions through the blockchain network will bring transparency and help prevent financial fraud.
(Article: Sandeep Soni)
(The suggestions on cryptocurrencies in the story are those of the relevant person and Financial Express Online does not take any responsibility for their advice. Before investing in cryptocurrencies of any kind, please consult your financial advisor.)