BlocksInform
The IMF issued a press release on Thursday detailing how it discussed a document on what it termed "Effective Policy Elements for Cryptographic Assets".
It's impossible to do anything.
The paper in question contains the questions of member countries of the IMF about the risks as well as benefits of crypto assets and how appropriate policy can be developed to respond to these concerns.
The IMF's press release underscores once again the cryptocurrency outages and the actions of malicious actors in space.
"Efforts to establish effective policies for crypto resources have become a key strategic priority for the authorities, in the context of the breakdown of various exchanges and others within the crypto ecosystem, and some crypto assets are collapsing. Doing nothing is untenable because crypto assets could continue to evolve in spite of the current slowdown."
Policy actions
The last sentence speaks volumes about the IMF's psyche and how it feels threatened by growing cryptography. The use of "can continue to evolve" is interesting in view of the fact that cryptography is almost sure to continue to evolve. The magnitude of current development in the sector will ensure this.
The press release then lists the "nine elements" that will need to be addressed if a comprehensive regulatory framework around cryptography is to be put in place.
The first of these "political actions" is also interesting to the extent that it sees the necessity of "safeguarding monetary sovereignty", and requires crypto assets to receive no official money or legal tender. Here, he could think of El Salvador and other countries or regions that could think about it.
In line with its anti-crypto stance the IMF stated in the paper that it:
“noted serious concerns about financial stability, financial integrity, legal risks, consumer protection, and market integrity.”
The IMF has expressed concern that "widespread adoption of crypto assets could undermine the effectiveness of monetary policy" along with many other evils.
Opinion
In short, the IMF has realised that it needs a broad consensus among its members in order to be able to really assert far more pressure on crypto and to try and stop it in its tracks.
Pinpointing the Salvadoran government and being told to look after their own affairs would not have worked well with the IMF. Know that bitcoin and crypto may well enter a bull market this year, with the probability of many investors wanting to participate, will have significant implications for the IMF.
When the cryptography market is in good shape, better adoption is obvious. The FMI will be sure to try and exit all stops to prevent the crypto train from leaving the station.
