Although the IMF alleges that Bitcoin is a risky shortcut, Gladstein denies it. On his Twitter account, he stated that countries would encourage the adoption of cryptocurrencies.
Alex Gladstein of the Human Rights Foundation criticized the International Monetary Fund (IMF) for its stance on the alleged risks of cryptocurrencies. The agency stated in July that cryptocurrencies, especially Bitcoin, can represent a shortcut for many countries. However, it added that their negative consequences outweigh their potential benefits.
Besides being the director of strategy at the Human Rights Foundation, Gladstein is a member of the Oslo Freedom Forum. He questioned an IMF’s post, in which they express negative opinions on the possible adoption of Bitcoin as legal tender.
Gladstein said that the obligation to accept payments in Bitcoin due to its adoption as legal tender is precisely the point of legislation. However, the adoption of Bitcoin does not necessarily imply an imposition on citizens. For example, Salvadoran President Nayib Bukele stated that no one needs to download the official cryptocurrency wallet.
Regarding whether nations will encourage the use of cryptocurrencies as currency, Gladstein said they may and will.
The IMF also said that the adoption of cryptocurrencies would affect public and private finances in the global economy. Gladstein cited a phrase where the agency claims that central banks cannot apply interest rates in a foreign currency. He responded by highlighting that Bitcoin gives people the option to choose a monetary system without inflation.
Similarly, Gladstein denied that Bitcoin is not beneficial as a store of value for the unbanked. He considers that statement false and said that the best choice is to spend fiat money and save BTC.
What the IMF Says about Bitcoin
According to the IMF’s publication, Bitcoin and other cryptocurrencies have always remained outside the domain of finance. However, they noted that many countries consider making it legal tender, implying their compulsory acceptance in the public and private sectors.
Even though it did not explicitly name it, the agency seems to refer to the case of El Salvador. The country that Nayib Bukele leads will be the first to adopt Bitcoin as a legal tender. That will happen once the Bitcoin law comes into effect on September 7th.
In that sense, the IMF considers that cryptocurrencies allow making cheaper payments while improving financial inclusion. Furthermore, they believe that those assets promote competition and resilience among payment providers and make international transfers easier.
However, the agency claims that the risks of crypto assets exceed their potential benefits. Among the supposed negative repercussions of the adoption of Bitcoin, they include its volatility, the opportunity to conduct private transactions for better or worse, and its impact on macroeconomic stability.
The IMF believes that the adoption of cryptocurrencies would affect the collection of taxes by governments. Additionally, they say they would pose a security threat as they do not have strict regulations to fight money laundering and terrorism financing.
By Alexander Salazar
