The International Monetary Fund or IMF, an international financial institution that helps 190 countries achieve financial stability, has made a new statement regarding crypto.
Although previously seen rejecting and opposing the idea of crypto innovation, the IMF currently seems to support using crypto as a transaction tool worldwide.
IMF Supports Crypto as a Transaction Tool
The IMF has just published an article on its official website declaring its support for crypto.
In the article, the IMF stated that some central bank crypto and digital currencies or CBDCs could help replace the current traditional financial system.
The IMF takes an energy efficiency perspective, where some cryptos and CBDCs are considered good alternatives to the current financial system because they use less electrical energy.
The article compares the energy use of traditional payment instruments like credit cards with crypto assets.
In this comparison, the IMF made a comparison chart where the point is, according to many publications, credit card energy consumption is still lower than Proof of Work blockchain-based crypto.
But the energy consumption of credit cards, which represent traditional financial systems, is still higher than blockchain-based cryptos other than Proof of Work and much higher than cryptos with centralized blockchain systems.
The IMF then completes the comparison by giving an example of a centralized blockchain system, which refers to a central bank digital currency system or CBDC.
“Depending on the system, CBDCs and some cryptocurrencies can be alternative payment systems that are more energy efficient than the current system, including credit and debit cards for most banks. Said the IMF.
Furthermore, the IMF also informed that several central banks are considering having CBDCs available in card systems like credit and debit cards.
The IMF feels this is a great move not only for CBDC but also for crypto. Because with the integration of debit and credit cards with crypto and CBDC, crypto adoption will be even more significant, and the world’s payment system energy consumption will be minor.
All Support to Save the Earth
This support from the IMF for crypto and CBDC is a shock for the crypto market.
Previously, the IMF was famous for not supporting and blaspheming crypto as a dangerous fraud and innovation scheme.
One of the clear pieces of evidence is when the IMF banned several countries in South America from adopting crypto as a means of payment.
An example of a country that has long debated with the IMF is El Salvador, which currently continues to use Bitcoin as a means of payment.
It should be noted that despite the support article, the IMF still does not fully support crypto adoption and considers the future of money to be uncertain.
But the institution strongly encourages policymakers in world countries to consider the energy factor if they want to adopt crypto and CBDC.
The point is, despite low energy consumption, the IMF asks countries to provide environmentally friendly and sustainable energy sources so that there are no significant problems when adopted.
The IMF also emphasized that in the future, the energy factor will be important in determining policies, especially related to the financial sector, considering that environmental pollution continues to increase due to unfriendly energy.
Finally, the institution emphasized that good crypto adoption is third-generation crypto with lower energy consumption and not an older generation like Bitcoin, whose energy consumption is still high.
For now, no countries have responded to the statements in this article in detail because they seem to be focused on making reasonable regulations regarding crypto and CBDC.
The IMF has also provided a complete regulatory guidance framework for countries in the world if they want to adopt crypto.
The IMF’s chief economist, Gita Gopinath, also emphasized that the IMF is not currently going to apply a crypto ban subtly, as it has already dug deeper and found many benefits in this innovation.
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