Cryptocurrencies and establishment: The present and the future
- IMF warned on Monday that cryptocurrencies are not suitable as the national currency
- IMF called Bitcoin "extremely volatile" and not good for 'store value"
- It also said that cryptocurrencies are unrelated to the real economy
In a blog post, IMF called cryptocurrencies such as Bitcoin "extremely volatile and not good for people who need to "store value." The agency also said that these kinds of currencies are "unrelated to the real economy." . The IMF argues that crypto will not prove popular in "countries with stable inflation and exchange rates, and credible institutions." In unstable nations, on the other hand, it has the potential to drive the prices unstable.
IMF also pointed out that cryptocurrency is often used to "launder ill-gotten money, fund terrorism, and evade taxes."
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On the other hand, the new bipartisan infrastructure bill that just passed a preliminary Senate vote on Thursday has proposed "to raise $28 billion from crypto investors" by taxing their profits, CoinDesk reported.
Though they are falling today, the crypto market may actually benefit from the tax proposal. When a new revenue stream emerges for the government, it may actually help in mainstreaming virtual currencies. The current trend though is against such currencies. Most of the governments have taken an antagonistic approach towards them because of their non-traceability, fueling fears that the currencies could be used for funding illegal activities and crime.