The International Monetary Fund( IMF) has maintained its aggressive opposition to countries adopting Bitcoin as legal tender.
The IMF released a report stating that African countries should desist from running to Bitcoin as a one-stop cure for all their economic troubles. This meeting came after a ruling from the Central African Republic to integrate the digital currency into its monetary system.
According to the head of the IMF’s African Department, Abebe Aemro Selassie, the action was a bad idea. He implied that a more “robust” means of settlement with transparency alongside a proper regulatory policy was lacking. He further stated that emerging economies should stop seeing crypts as an easy way out of harsh economic conditions.
“It is really important to not see such things as a panacea” for the challenges that countries face,” he said.
The Central African Republic has become the first African country to make this bold step and the second in the world after El Salvador. The IMF took a similar position after the Central American country adopted Bitcoin as a legal tender.
The IMF associates Bitcoin with corrupt countries
It is worth stating that before now, the IMF has been making desperate efforts to dissuade more countries from taking a cue from El Salvador. An earlier report from the international organisations went further to connect cryptocurrency adoption to corruption and some bad economic conditions. Other metrics compared high inflation, GDP per capita and average remittances to GDP with Bitcoin’s adoption pace.
The report emphasised that developed countries with better traditional financial systems have less need for cryptos. They also further mention that scams always sprung out of countries with shaky economies.
Meanwhile, statistics revealed that countries with the most crypto gains were mainly among the elite regions. Although crypto adoption may be driven by the need to escape tough economic conditions, they don’t seem to be as bad as the IMF tries to portray them. Furthermore, some regions from developed parts of the world like the US have indicated interest which weakens the thesis that only emerging economies need Bitcoin.
Do you think the International Monetary Fund is right to criticise the decision to adopt crypts? Let us know your thoughts in the comment section below.
Kingsley is a fintech writer with over 4 years of experience covering blockchain and cryptocurrency news. Alo first discovered Bitcoin in 2016 and has been passionate about it ever since, particularly the various ways blockchain can help Africa and the world at large. He desires to give the crypto space a more geographically balanced narrative and serve as a bridge between Africa and the rest of the world. His articles have been featured in Cointelegraph, Beincrypto, and Forkast.news, among others.
