Charles Hoskinson, founder of Cardano has been quick to defend cryptocurrency in recent times and never fails to criticize any authority or person that talks badly against the industry. The IMF is the latest regulator to get a response from the CEO.
IMF Threatens By the Introduction of Cryptocurrencies in Emerging Market
In a tweet on October 12, he commented on the International Monetary Fund’s recent warning about the introduction of cryptocurrencies in emerging markets.
He said the IMF is afraid that cryptocurrency can’t be bothered by hyperinflation and highly concentrated rails that are under the control of the central banks.
On October 1, Reuters reported that the International Monetary Fund had warned that crypto in emerging markets could disrupt capital controls and, in the short term, disrupt the financial stability of these regions.
Apparently, in response to the introduction of Bitcoin in El Salvador and other Latin American countries, the regulator has issued a warning, taking the following steps into account. In addition, according to Chainlink, the acceptance rate of cryptocurrencies is increasing in countries such as India (despite cryptocurrency bans), Pakistan and Vietnam.
IMF Blames the Central Banks for Lack of Credibility
According to the International Monetary Fund, factors such as unhealthy macroeconomic policies and inefficient payment systems are driving the adoption of cryptocurrencies in the developing world.
Regulators believe that one of the factors leading to crypto in emerging markets is the central bank’s lack of credibility with citizens and the local banking system, which are currently very weak. Other reasons are high inflation and a lack of stability in the local currency.
The IMF also stated that cryptocurrencies could threaten local fiscal policies and encourage tax evasion. The Regulator then urged developing country governments to consider issuing CBDCs in response to the rampant adoption of cryptocurrencies.