In the first article of this series, we were analyzing some of the reasons why the IMF, through two of its representatives, gave us to understand some of the “dangers” that the adoption of cryptocurrencies as legal currency in any country contains. of the world, if you missed it I suggest you click on this link and then come back to continue with this reading.
In this second installment we will study other arguments, raised by Tobías Adrián and Rhoda Weeks-Brown, advisers and directors of different departments of the IMF in their report, for which countries should refrain from using cryptocurrencies as legal tender, I quote:
"As a national currency, crypto assets, including bitcoin, carry substantial risks to macro-financial stability, financial integrity, consumer protection, and the environment. Inclusive, they should not be overlooked."
As I mentioned before, it is not my intention to carry out an uncompromising defense of crypto assets or an analysis biased by my belief that the future of financial exchanges is based on the blockchain system, I also clarify that I have not fully read the article that originated to this series of publications, so if someone does and wants to complement or refute what is indicated here, it would be a pleasure for me to read it.
Macro-financial stability
Without pretending that we see an economic class, we can mention the macroeconomic indicators that are directly related to the financial system of a country: the stock market, bond yields, and interest rates, as all these indicators are managed by entities Centralized, whether they are commercial banks, central banks, stock exchanges, exchange houses or other financial institutions, all obey either private or governmental interests.
It follows from the foregoing that the use of cryptocurrencies would imply little or no manipulation of the market by the interests mentioned above, they would have to adapt to the market supply and demand rules, therefore, to control the development of These indicators would have to put at risk the "stability" of their wealth to make large investments that allow them to have a little financial control.
Financial integrity
It has a lot to do with the above, for financial agents any project that they cannot control is labeled as "dangerous", anonymity indeed is one of the things that characterize the holders and negotiators of crypto assets, this makes them have doubts regarding the legitimacy and legality of the operations carried out in a newspaper within the blockchain.
However, do you have any idea how many banking or financial institutions in the world have been lent to launder huge amounts of money from drug trafficking or other illicit activities? funds in a ... murky way?, even governments covering up large illicit financial operations, of which "financial integrity" the IMF speaks.
Consumer and environmental protection
Other major complaints that the blockchain system has had are regarding the "risk" of falling into scams and the great damage it causes to the ecosystem, as a result of its high energy consumption.
Regarding the first point, it is very likely that at some point in your life you have had to file a complaint with your bank for money that was lost in a transfer, in a payment with a debit card, or for unauthorized charges to your credit card. credit, or not? Hence, except for the fact of sharing your wallet keys or investing in projects that are not real or well-founded, I do not see what the point is in terms of user scams.
Regarding the second point, effectively the bitcoin mining process, through the Proof-of-Work (PoW) generates a lot of energy expenditure, that is why the blockchain projects developed the Proof-of-Stake (PoS), the Delegated Proof of Stake (DPoS), or Leased Proof of Stake (LPoS) among many others, all seek to save commission cost and minimize energy consumption.
Could it be that the IMF does not know about this?
As you can see so far, the arguments seem to focus more on unfounded fears or doubts arising from the reality of the current financial system itself than from balanced and fair analysis of the operation of the blockchain system, that is why I invite you to continue training in this environment so that you themselves can draw their conclusions.
It is time to say goodbye to the last installment of this series of articles, as always not do not hesitate to leave me your opinion on this subject in the comment box, do you think that the use of cryptocurrencies negatively impacts the financial stability of a country? Do you think that money laundering operations are less likely to occur in centralized entities than Within the blockchain system? Do you consider that the blockchain represents an ecological threat?
We keep reading!
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