IMF Warns Countries Against Utilizing Cryptocurrency as Money

　　The International Monetary Fund (IMF) has urged countries against using Bitcoin as legal tender in place of central bank-issued money.

　　Speaking at the IMF Spring Meetings on Friday, Kristalina Georgieva, the IMF Managing Director, stated that countries should not adopt bitcoin as a form of currency in the economy.

　　Georgieva's declaration comes from a number of emerging economies, including the Central African Republic and El Salvador, both of which have declared Bitcoin to be legal tender alongside their national currency.

　　Both Central African Republic and El Salvador adopted cryptocurrencies to maintain their domestic currencies and sustain their economies by luring Bitcoin users for business transactions and tourism.

　　According to the IMF, crypto assets constitute an anti-establishment movement that threatens central banks' dominance and exclusive control over the money supply. The global financial authority issued a warning about the significant risks connected with Bitcoin use in terms of consumer protection, financial stability, and financial integrity.

　　However, Georgieva picked the Central Bank Digital Currency (CBDC) as the top financial system innovation. “The future of money is a prominent theme at the IMF's Spring Meetings,” the CEO said, cautioning against using volatile crypto currencies as money.

　　The Central African Republic (CAR) recognized Bitcoin as legal cash late last month, becoming the world's second country to do so after El Salvador. CAR lawmakers unanimously passed legislation making Bitcoin legal money alongside the country's official fiat currency, the CFA franc, and legalizing the use of cryptocurrencies.

　　El Salvador became the world's first adopter of the pioneering digital money in September of last year. It allows people of the Central American country to use the virtual currency, as well as the US dollar, which has been the official currency for more than two decades, to pay for products and services using a cyber-wallet software called Chivo.

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