“I don’t lose any sleep over Bitcoin competing with the dollar,” says IMF director

The International Monetary Fund (IMF) has stated that the US dollar will remain the global reference currency, while cryptocurrencies are mainly seen as investment vehicles. The statement was made by Kristalina Georgievadirector of the IMF, in an interview with Yahoo Finance last Tuesday (16).

According to her, cryptocurrencies are an asset class and not exactly money in the conventional sense. “It’s more like a money management fund”he claimed.

Georgieva argued that such a distinction is crucial at a time when the cryptocurrency sector is experiencing both intense ups and downs, marked by the trajectories of companies like FTX.

“Meanwhile, the US dollar retains its dominant position, supported by the strength of the US economy and the depth of its capital markets.”

“Bitcoin is not money”

The new Bitcoin ETFs, which started trading last Thursday (11), represent a change for the crypto industry. For the first time, average investors can gain exposure to the world’s most popular cryptocurrency without having to own it directly.

This openness is just one step toward broader adoption of cryptocurrencies, according to industry experts.

On this issue, the IMF maintains a cautious stance. Georgieva doesn’t see the day when cryptocurrencies like Bitcoin can rival the US dollar in status. She says this scenario, if it exists, is so far in the future that it’s not practical to talk about it right now.

“Look, this day, if it even exists, is so far away that I don’t think it’s very helpful to talk about it. Why is the dollar a dominant currency today? Because of the size of the US economy and, more importantly, the depth of US capital markets.”he argued.

“I’m in no rush to convert my dollars to another currency, but that doesn’t mean you shouldn’t”

By expressing her personal position that she does not want to exchange her dollars into another currency, Georgieva reinforced her continued confidence in the stability of the US dollar. However, she does not rule out the importance of diversifying investments, including cryptocurrencies such as Bitcoin.

She recognizes Bitcoin as an emerging form of asset, but maintains a negative view of cryptocurrencies competing with the US dollar in terms of global dominance.

Her approach suggests that while diversification is a key component of a successful investment strategy, she does not see Bitcoin, in its current state, as a significant threat to the global financial status quo.

“I’m in no rush to convert my dollars into another currency. That doesn’t mean you shouldn’t diversify. But I wouldn’t worry too much about Bitcoin rivaling the dollar. There are things that make me lose sleep – this isn’t one of them.” concluded.

In the regulatory context, Georgieva has already defended the need for more regulation of cryptocurrencies and even suggested that banning these assets should be a considered option, if regulation fails or is too slow to be implemented.

Georgieva has also raised concerns about how the widespread adoption of cryptocurrencies could undermine countries’ financial stability, weaken central banks’ ability to manage interest rates and capital flows, and make tax collection more difficult.

The IMF Managing Director also stated that the high adoption of cryptocurrencies could endanger macro-financial stability and emphasized the importance of global coordination in crypto policy.

She ultimately reiterated that the IMF is not trying to return to a pre-crypto world or stifle innovation, preferring instead to oversee the ecosystem.

Source: Live Coins