The International Monetary Fund has issued a warning with regard to how the widespread use of cryptocurrency stands as a threat to the global monetary system. The IMF has revealed that the popularized use of cryptocurrency has potential to undermine the effectiveness of the monetary policy, evade capital flow management measures and minimize fiscal risks - (IMF ) This comes as many countries are embracing the use of cryptocurrency, but the IMF warns that countries should take care not to allow cryptocurrency to be given a legal tender status. It instead advised countries to implement robust macroeconomic policies such as credible institutions and monetary frameworks.- (IMF) The IMF argues that all these will be important in safeguarding the global monetary system and its stability.
The IMF is a well-respected global entity, and personally I think them issuing such a warning will have the effect of delaying the adoption of cryptocurrency as an acceptable payment option in daily life. This is compounded by the fact that US banking regulators also issued a similar warning with regard to the liquidity risks presented by certain sources of funding from crypto asset related entities.- ( IMF)The IMF recognizes the potential benefits of the use of cryptocurrency without turning a blind eye to the risks associated with it, hence they are calling for policy-makers to come up with coordinated policy responses that safeguards the sovereignty of monetary policies.
Sources - IMF says no crypto as legal tender — Community disagrees https://m.investing.com/news/cryptocurrency-news/imf-says-no-crypto-as-legal-tender--community-disagrees-3014618