Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), stated that it is difficult to believe Bitcoin and other cryptocurrencies as money. During an event hosted by Bocconi University in Italy, Georgieva pointed out that central bank digital currencies (CBDCs) are the most reliable form of digital money.
The head of the International Monetary Fund described virtual currencies as “physical assets” as there are no assets backed by assets that keep their prices stable. Georgieva noted that “in the history of money, it is difficult to consider it money.” “It is impressive how effectively the international community, central banks and institutions like ours are involved in making sure that in a fast-moving digital world, money is a source of trust and helps the economy to function rather than (being) a risk,” she commented.
However, she indicated that policy makers should evaluate the issue of cryptocurrencies to check whether they can be considered a reliable medium of exchange that the public can rely on. The comments came in the context in which I talked about Europe in appropriate circumstances to avoid another debt crisis such as the one that Greece faced after the global financial crisis that it witnessed between 2007 and 2008.
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International Monetary Fund and cryptocurrency
As a historical context in the relationship between the IMF and digital currencies, in 2019, the World Bank and the International Monetary Fund joined forces to launch “Learning Coin,” a so-called “quasi-cryptocurrency” using its own blockchain.
The currency was created as a tool used by the International Monetary Fund and the World Bank to better understand blockchain technology and how cryptocurrencies are used. Learning Coin will also come with an app where researches, videos, presentations, and blog articles are stored. Furthermore, Learning Coin holders can then exchange the coins for some “realistic” rewards.
The test was the latest indication that the IMF was taking blockchain technology seriously, at least during that time.