Attempting to make cryptocurrencies a national currency is rather an inadvisable shortcut than useful innovation. The International Monetary Fund (IMF) has published a new report on the issue of global cryptocurrency adoption. According to the fund, in most cases risks and costs associated with cryptocurrencies outweigh their potential benefits.
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Tobias Adrian, Director of the IMF's Monetary and Capital Markets Department, and Rhoda Weeks-Brown, Director of the IMF's Legal Department, admit that a cryptocurrency might "catch on as a vehicle for unbanked people to make payments." However, Internet access and technology needed to transfer cryptocurrencies still remains scarce in many countries, the experts note.
In June, the IMF warned that El Salvador's decision to legalize bitcoin (EXANTE: Bitcoin) as legal tender might pose financial and legal risks. The fund said that El Salvador's approval of bitcoin requires "very careful analysis" as the country is seeking a more than $1 billion program.
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