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Why the IMF is right about cryptocurrencies

by LLT Editor
22nd Apr 22 11:48 am

The IMF report is both right and wrong on cryptocurrencies. Bitcoin and crypto are indeed shaking-up the current world order; but doing so for the better, affirms the CEO of one of the worldโ€™s largest independent financial advisory, asset management and fintech organisations.

The analysis from Nigel Green of deVere Group comes as the International Monetary Fund publishes the Global Financial Stability Report, which assessed Bitcoin and other cryptocurrencies disrupting the global monetary system.

The IMF says that โ€œstrengthening macroeconomic policies is necessaryโ€ to fend off โ€œcryptoization risks.โ€

Nigel Green says: โ€œThe IMF is correct โ€“ cryptocurrencies are indeed ushering in a new world order.

โ€œThe times ahead are destined to be radically different from what we have all experienced in our lifetimes so far.

โ€œOne way in which we will see this each day is with currencies, which are mediums of exchange and store holders of value.

โ€œIncreasingly, there will be a mixed system. Some will be currencies from governments, including digital and non-digital, and some will be digital and decentralised, such as Bitcoin.

He continues: โ€œThe U.S. dollar has reigned supreme for around 75 years. But thereโ€™s no doubt that the world is shifting away from a dollar-dominated system.

โ€œThis is because astronomic levels of debt, and the enormous, ongoing amount of money printing to monetise these debts, have caused the considerable drop in the long-term value of the global reserve currency.

โ€œInvestors โ€“ including individuals and governments โ€“ are therefore looking for alternative currencies, such as cryptocurrencies.

โ€œMoving forward, these will increasingly compete with traditional, fiat ones and this will help trigger the decreasing dominance of currently leading international currencies.โ€

However, the deVere CEO says that the IMF should embrace Bitcoin, which will โ€œinevitably play a critical future roleโ€ in the global monetary system.

โ€œBitcoin can also be a force for social good as it can offer a way out of both financial and political repression,โ€ he notes.
โ€œItโ€™s estimated that more than one billion people live in countries that are suffering from out-of-control inflation, where the money they earn depreciates fast against the goods and services they need to buy.

โ€œBut Bitcoin can offer a โ€˜get-outโ€™ for those whose national currency is plummeting in value in this way.โ€

Bitcoin can also serve those who face political suppression. There are countless examples around the world where those who are dissenting against ruling authoritarian regimes have their accounts shuttered and/or funds stolen. This means they are then trapped, possibly forever.

โ€œThis is where Bitcoin can play a hugely beneficial role as they can receive and send it safely, securely, without censorship.โ€

The deVere CEO goes on to add: โ€œAs a global, decentralised system, it affords anybody, anywhere, regardless of their political beliefs, nationality, ethnicity, religion, gender, or sexuality, the same level playing field. It canโ€™t discriminate.

โ€œThis is helping not only the politically repressed but the 1.7 billion global โ€˜unbankedโ€™ population. Thatโ€™s almost two billion people worldwide who cannot access financial services because their data is not held on โ€˜traditionalโ€™ sources, largely due to legacy biases.โ€

Nigel Green concludes: โ€œBitcoin has the potential to provide enhanced financial and political freedom. It has the power to create a better tomorrow.

โ€œWhy the IMF, an organisation whose remit is to โ€˜achieve sustainable growth and prosperityโ€™ is scared of a future-focused solution, is baffling.

โ€œClearly, past methods, in poorer countries havenโ€™t been as successful as they should have been. As such, we need to look forward, not back.โ€

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