The director of the IMF acknowledged that there had been too much money circulating since 2020. This situation is a consequence of unlimited printing of banknotes, a practice that the Bitcoin network radically avoids.
Kristalina Georgieva, the director of the executive board of the International Monetary Fund (IMF), revealed a controversial stance during a live interview led by the CNBC network. She spoke about the unlimited printing of banknotes driven since 2020 by the pandemic, which has caused sudden inflation worldwide, including in Europe and other areas in the United States of America.
The IMF representative highlighted that she believes they are not paying enough attention to the unexpected consequences of their moves. Even though their actions have a goal in focus, she expressed during the interview that they are finding it harsh to resolve the unexpected impact they caused with these moves.
Faced with the massive decision to spend to sustain the economy, the director recognized that there was undoubtedly a lot of money and too few goods. An unexpected statement from the director of the IMF shows that she is sorry for the number of bills that countries printed due to the outbreak caused by COVID-19.
This situation is a topic Bitcoin (BTC) enthusiasts discussed in their forums. Unlike banknotes, the issuance of BTC is relatively unlimited, and it does not rely its control on a central entity.
The network permits a maximum rate registered at 21 million bitcoins issued through bitcoin mining. That is why defenders of the crypto environment believe that the adoption of cryptocurrency could end the increase in inflation caused by the excessive printing of banknotes.
The Printing of Money Does not Serve to Cover the Actual Economic Crisis
The director of the IMF highlighted that the printing of banknotes does not solve the situation. It causes struggles that could even get worse. She maintained that they did not think about the possible consequences of this action.
The director also warns that she was not well informed of the possible impact. Likewise, she clarified that in the face of something that hits them, they forget about other crises and that, for her, is incredibly worrying.
The director also mentioned that when the armed conflict began, a week later, her daughter called her asking what happened to the covid-19 pandemic; that topic vanished from the media, and the entity ignored it. As a reflection, she added that there are unintended consequences of the actions taken, and they do not have enough space to cover the whole situation.
The reflection of the director of the IMF arrived before the deployment of Russia’s war against Ukraine, an unexpected situation that inflicted severe damage on the world economy. This aspect was estimated by analysts and Georgieva herself, who expressed days ago this month: that there is a crisis on top of an already existing problem. In economic terms, growth is slowing, and inflation is rising.
By: Jenson Nuñez
