Category: IMF

Economics Professor Warns ‘Cryptocurrencies May Contribute to Monetary and Financial Instability’

Economics Professor Warns ‘Cryptocurrencies May Contribute to Monetary and Financial Instability’

Cornell University’s professor of economics and former head of the IMF’s China division, Eswar Prasad, has warned that “Cryptocurrencies may contribute to monetary and financial instability.” He added that the risk is amplified if the industry is unregulated and lacks investor protection. Economist Sees Crypto Posing Risks to Financial Stability Eswar Prasad, the Nandlal P. […]

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G20-Backed Think Tank Factors in Stablecoins and CBDCs in Solving Remittance Woes

The Financial Stability Board (FSB), a multinational Think Tank that provides policy recommendations to the G20 has highlighted the importance of stablecoins and Central Bank Digital Currencies (CBDCs) in the pursuit of a functional global remittance network. In its latest report, the body highlighted the challenges that surround cross-border payments which range from high transaction […]

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US Inflation Expectations Highest Since 2013, Gas Prices Skyrocket, Supply Chains Buckle

US Inflation Expectations Highest Since 2013, Gas Prices Skyrocket, Supply Chains Buckle

Americans are still concerned about dealing with inflation, as the cost of goods and services has continued to rise significantly in a short period of time. The Federal Reserve has published the latest Survey of Consumer Expectations report and U.S. households believe inflation will be up 5.3% one year from now. In addition to the […]

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IMF Head Says Central Bank Digital Currencies Are Reliable, Hard to Think of Bitcoin as Money

IMF Head Says Central Bank Digital Currencies Are Reliable, Hard to Think of Bitcoin as Money

Digital currencies backed by central banks are the most reliable form of digital money, according to IMF managing director Kristalina Georgieva. At the same time, to think of cryptocurrencies such as bitcoin as money is difficult, believes the chief executive of the international financial institution. IMF Chief Georgieva Marks Top Issues for Policymakers Exploring CBDCs […]

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IMF Warns Crypto Boom Poses New Financial Stability Challenges, Urges Regulators to Step Up

IMF Warns Crypto Boom Poses New Financial Stability Challenges, Urges Regulators to Step Up

The International Monetary Fund (IMF) warns that the rising popularity of cryptocurrencies poses new challenges to financial stability. “Cryptoization can reduce the ability of central banks to effectively implement monetary policy. It could also create financial stability risks.” IMF Sees New Challenges to Financial Stability From Crypto The International Monetary Fund (IMF) warned about the […]

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IMF Report: Crypto’s volatile nature could “pose financial stability challenges”

The latest Global Financial Stability Report by IMF highlighted the volatility factor in virtual currencies. While IMF stated that the crypto sphere opens pathways to several new opportunities including improved and affordable cross-border payments; it also alerted people that the digital currency assets pose financial stability challenges. “The rapid growth of the crypto ecosystem presents […]

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First Day of Bitcoin as Legal Tender: El Salvador Buys the Dip, Country’s BTC Stash Grows

First Day of Bitcoin as Legal Tender: El Salvador Buys the Dip, Country’s BTC Stash Grows

Bitcoin is now legal tender in El Salvador, and the country’s bitcoin stash has grown to 550 coins. The Salvadoran government started buying the cryptocurrency Monday ahead of the Bitcoin Law taking effect. On Tuesday, President Nayib Bukele said El Salvador bought the dip. El Salvador Buys More Bitcoin El Salvador’s Bitcoin Law came into […]

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Bitcoin Legal Tender in 7 Days: El Salvador Publishes Video Explaining What to Expect

Bitcoin Legal Tender in 7 Days: El Salvador Publishes Video Explaining What to Expect

Bitcoin will become legal tender in El Salvador alongside the U.S. dollar in seven days. The Salvadoran government has released a video explaining what to expect when the Bitcoin Law enters into force. The video features the government’s fee-free crypto wallet, Chivo. Government’s Video Explaining What to Expect When Bitcoin Becomes Legal Tender The Bitcoin […]

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IMF: Bitcoin Is Privately Issued Crypto With Substantial Risks, Inadvisable as Legal Tender

IMF: Bitcoin Is Privately Issued Crypto With Substantial Risks, Inadvisable as Legal Tender

The International Monetary Fund (IMF) says that crypto assets, like bitcoin, are privately issued with substantial risks, and “Making them equivalent to a national currency is an inadvisable shortcut.” The crypto community disagrees. IMF Claims Bitcoin Is Privately Issued Crypto With Substantial Risks, Inadvisable for Use as Legal Tender The International Monetary Fund tweeted about […]

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Moody’s downgrades El Salvador’s long-term foreign currency issuer rating, and it has a Bitcoin connection

Moody’s, a popular financial credit rating business has downgraded El Salvador’s long-term foreign-currency issuer and senior unsecured ratings to Caa1 from B3. The rating group also lowered El Salvador’s foreign-currency country ceiling to B2 from B1. It said the current outlook remains negative towards the small Central American nation. Moody’s cited two key reasons for […]

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