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IMF: Bitcoin has become the most sought-after tool in conditions of financial instability

Bits.media / 19.04.2024 / 17:58
IMF: Bitcoin has become the most sought-after tool in conditions of financial instability
Experts from the International Monetary Fund (IMF) said that residents of countries with restrictive financial regulations are increasingly turning to bitcoin for safe cross-border transactions.

In conditions of financial instability, the first cryptocurrency acts as a wealth preservation tool and a means of making payments. Residents of developing countries use bitcoins to circumvent capital controls by traditional banking systems and fiscal authorities. Especially in regions where people are experiencing economic difficulties.

Bitcoin is no longer an exclusively speculative investment. The largest cryptocurrency is harmoniously integrated into everyday financial transactions and has become a passport to operations on the global financial market, the IMF says.

"Bitcoin transactions enable people in countries with high inflation to stabilize savings and participate in global trade on terms that are not possible through local currencies. However, the lack of oversight and anonymity provided by bitcoin may complicate regulatory efforts to monitor and control transactions to prevent illegal activities such as money laundering."

The IMF believes that the international community should come to a unified regulatory framework covering the unique aspects of digital assets. Since such measures will not only help mitigate regulatory risks, but will also allow using the advantages of digital currencies, especially as instruments of economic freedom.

Earlier, representatives of the International Monetary Fund reported that the central banks of six countries in sub-Saharan Africa (SSA region) are ready to launch their own digital currencies by 2028.

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