The International Monetary Fund (IMF) has called for global adoption of digital currencies, highlighting the importance of adapting to the digital transformation of fiat currencies. During the IMF-World Bank Annual Meetings, Managing Director Kristalina Georgieva described this shift as 'very positive and powerful.' She differentiated central bank digital currencies (CBDCs) from unbacked cryptocurrencies like Bitcoin, which the IMF does not endorse as reserve assets.
The IMF also expressed concerns about the $305 billion stablecoin market, warning that it could pose risks to traditional lending and financial stability. In a related development, El Salvador has revised its Bitcoin law, making Bitcoin acceptance voluntary to comply with IMF conditions for a $1.4 billion financing agreement.
IMF Advocates for Digital Currencies, Cautions on Stablecoins
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