The Magazine for Asian Investors
Why does the IMF hate bitcoin?
This question is certainly asked by many people because this agency often talks about crypto and bitcoin, always in a negative sense. But why is that the case? Let’s find the answer together.
What is the International Monetary Fund or IMF?
The IMF is responsible for promoting financial cooperation and providing policy advice, including support for the development of potential. Maintaining global macroeconomic and financial stability to help countries build and sustain strong economies.
Let’s imagine it together. If the IMF sets global monetary policy in the short and medium term to respond to what will happen at any time, including influencing the world market. Obviously, this entity wants to create and maintain its centralized global financial system. Unlike Bitcoin, which empowers people to be self-sufficient and create a decentralized financial system that is outside the control of the shadow banking system.
The reason why the IMF hates Bitcoin is probably related to the IMF’s fundraising. It is because there are many products in the crypto ecosystem that could attract the attention of government bonds. High yields for shorter periods of time like Stablecoins or DeFi.
This can lead to a loss of control over bonds and a loss of other income streams. What crypto and bitcoin can create are not what the IMF wants.
The IMF also expressed concern about interest rate setting, consumer protection, as well as fraud, and possible cyberattacks. If there is a mistake, it can be difficult to track.
At the same time, cryptocurrencies are highly dependent on the internet and technologies that many countries still do not have access to.