Head of IMF Says Its Difficult to Think in Cryptos as Money
Instead, Georgieva believes CBDCs could be the most reliable form of digital money.
Kristalina Georgieva, International Monetary Fund (IMF) Managing Director, stated that its difficult to believe in Bitcoin and other cryptocurrencies as money. During an event hosted by Bocconi University in Italy, Georgieva noted that central bank digital currencies (CBDCs) are the most reliable form of digital money.
The head of the IMF branded virtual currencies as ‘de-facto assets’ as there are not backed by assets that hold their price stable. “In the history of money, it is difficult to think of them as money,” Georgieva noted. “It is very impressive how much the international community, the central banks, institutions like ours are now actively engaged to make sure that in this fast-moving world of digitalization, money is a source of confidence and helps the economy function rather than (being) a risk,” she commented.
Still, she pointed out that policymakers should assess the digital currencies issue to check whether they can be considered a trustable means of exchange that the public could rely on. The comments were given in the context where she talked about Europe in proper conditions to avoid another debt crisis such as the one faced in Greece after the global financial crisis experienced between 2007 and 2008.
IMF and Cryptos
As a historical context in the relationship between the IMF and digital currencies, in 2019, the World Bank and IMF joined forces to launch “Learning Coin,” a so-called “quasi-cryptocurrency” with its own private blockchain.
The coin has been created as a tool for IMF and the World Bank to understand better blockchain technology and how cryptocurrencies can be used. The Learning Coin will also come with an application where research, videos, presentations, and blog articles are stored. Moreover, Learning Coin holders can then redeem the coins for some “real-life” rewards.
The test was the latest indication that the IMF was taking blockchain technology seriously, at least during that time.
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