Is IMF Actually Bullish On Crypto??

The International Money Fund (IMF) has had a very adversarial relationship with crypto, but recent comments from one of their higher-ups point to a softening stance.  

Covered:

  • Comments From Kristalina Georgieva
  • Why Is IMF So Afraid Of El Salvador?

IMF Comments From Kristalina Georgieva

During a Davos panel discussion, IMF’s Managing Director Kristalina Georgieva spoke out on crypto. For the most part, her comments were akin to a bar band playing all the hits crypto haters love to sing along to like “Crypto is a pyramid scheme,” and “Bitcoin is too volatile to be a store of value.”

However, Georgieva mixed in some of her own stuff into her set. One particular comment from the managing director was a certified banger. “I would beg you not to pull out of the importance of this world … It offers us all faster service, much lower costs, and more inclusion, but only if we separate apples from oranges and bananas.”

Wow. Is that you IMF or do I have you confused for a CT influencer? Seriously, all that quote was missing was a LFG at the end.

That banger wasn’t the only “new stuff” Georgieva tried out in front of Davos. She also riffed on stablecoins. On the collapse, she said, “The less there is backing [a digital currency] up, the more you should be prepared to take the risk of this thing blowing up in your face.” However, she also pointed out that some stable coins “deserve” the label of stable because they are backed 1:1 by dollars. 

Recommended: Blockchain Goes To Space

Why Is IMF So Afraid Of El Salvador?

It’s definitely a good sign for crypto when someone as senior at the IMF as Georgieva speaks so positively on crypto. Sure, it was sandwiched between the standard fare the crypto world has become too tired to even rail against, but hearing anything positive coming from the IMF, especially, is definitely a positive development.

But it also begs the question, why did the IMF practically beg several South American countries to get rid of crypto? Most recently, the IMF pressured El Salvador unsuccessfully, and Argentina successfully, to drop crypto. If some stablecoins are good, and crypto can offer faster service with lower costs, wouldn’t it then follow that the IMF should be more supportive of the efforts of Nayib Bukele in El Salvador?

That’s a good question.

Recommended: Institutions Heavily Shorting El Salvador’s Volcano Bonds

Source