Skip to main content

CRYPTO IS A SAFER STORE VALUE, SAYS IMF

 

Cryptos may appear as safer store of value, says IMF

cryptocurrency
THE International Monetary Fund has said that weak central bank credibility and a vulnerable banking system in emerging economies can make cryptocurrencies appear as a safer store of value to residents.The IMF disclosed this in a report, titled ‘COVID-19, crypto, and climate: Navigating challenging transitions’.                                               The IMF said crypto adoption in some emerging markets and developing economies was outpacing that of advanced economies, driving a wave of “cryptoisation”.                                               It said, “Unsound macroeconomic policies combined with inefficient payment systems in some emerging markets and developing economies boost crypto adoption.
"Some potential pull factors for crypto adoption, such as speculative retail investing, may be common across countries, but some of the recent drivers are likely more specific to a subset of emerging markets and developing economies. For example, weak central bank credibility and a vulnerable banking system can trigger asset substitution as domestic residents seek a safer store of value.”                                                According to the IMF, dollarisation pressures are a persistent risk for several emerging markets and developing economies.                                                      It said, “The crypto ecosystem can help domestic residents convert some of the headwinds of traditional dollarisation -such as exchange rate restrictions and challenges in accessing and storing foreign assets – into tailwinds.

“For example, global crypto exchanges or other less secure methods, such as P2P transfers, can be used to bypass capital flow management measures; private wallets can act as a form of offshore bank account to store wealth.”

According to the fund, inefficiencies in payment systems such as a lack of interoperability among various domestic payment systems are a major problem for remittances as well as trade.

It said that given the large share of unbanked people in some emerging markets and developing economies, remittances took place through cumbersome cash-based methods, such through post offices and other transfer operators.

The IMF added the payment rails of crypto assets could make some of these services faster and cheaper, especially through the integration of stablecoins.

It said although these gains relied on access to the internet and other technologies, which were scarce in many of these countries.

“Whatever form of achievement is made by adoption of crypto as remittances will have a marginal impact on monetary policy or capital flows as the underlying crypto assets will likely be held for only a short time before it is exchanged into the local currency,” it said



Comments

Post a Comment

Popular posts from this blog

$100 MILLION STOLEN BY HACKERS IN CRYPTO HEIST

  Hackers steal nearly $100m in Japan crypto heist IMAGE SOURCE, Liquid has been hit by hackers, with almost $100m (£73m) estimated to have been stolen. Leading Japanese cryptocurrency exchange Liquid has been hit by hackers, with almost $100m (£73m) estimated to have been stolen.  The company announced that some of its digital currency wallets have been "compromised." It is the second major theft of cryptocurrencies to take place in recent days.                 Last week, digital token platform Poly Network was at the centre of a $600m heist. "WE ARE SORRY TO ANNOUNCE THAT #LIQUIDGLOBAL WARM WALLETS WERE COMPROMISED, WE ARE MOVING ASSETS INTO THE COLD WALLET," THE COMPANY SAID ON TWITTER. So-called 'warm' or 'hot' digital wallets are usually based online and designed to allow users to access their cryptocurrencies more easily, while 'cold' wallets are offline and harder to access and therefore usually more secure.                            
Post a Comment
Read more

Countries Accepting Nigerians Seeking Second Citizenship

  Countries Accepting Nigerians Seeking Second Citizenship Nigerians are able to access the following citizenship and immigration programs: The Caribbean Second Citizenship Programs, Caribbean nations like St. Kitts & Nevis, St. Lucia and Grenada offer second citizenship through their respective Citizenship-by-Investment programs. A holder of one of these passports may travel visa free to about 135 countries, including all European Union countries, the UK, Russia, Turkey, Singapore and Hong Kong. Holding a citizenship from one of these respected countries may also make it easier to obtain residency status or study in other countries, and allows political security and makes it easier to open bank accounts in foreign jurisdictions. To qualify, an applicant needs to be of good reputation and make a government donation of at least $100,000 USD after approval of their citizenship application.  Approval of a Citizenship-by-Investment application normally takes about 3 months, and all de
3 comments
Read more

AKURE OBASHIP: OBA AGUNSOYEBIOYINBO ADEMUAGUN ADESIDA 11 BROUGHT CLASS AND DIGNITY TO THE THRONE

      AKURE OBASHIP: OBA AGUNSOYEBIOYINBO ADEMUAGUN ADESIDA 11 BROUGHT CLASS AND DIGNITY TO THE THRONE                 By Sunday Ajibola There are men and there are men. Man gets to positions of power and authority and bring to bear their inner qualities. Position, as we have it here, is used to do all sorts of things; good and bad. But mostly and vexatiously, position blinds us as we use it to cheat and deny others their rights. Certain men understand that position is an opportunity to etch their names in gold and put such in the same of time.   It is exactly fifty years today that the 42nd Deji of Akure, late Oba Agunsoyebioyinbo Ademuagun Adesida 11 joined his ancestors. That fateful day was Sunday and in the evening; darkness was just enveloping the city. It was the strange shouts of "opo ye o, opo ye o, opo ye o", that prompted me to rush out of our house at Oke aro. I saw people running helter, skelter. I did not bother about them. I was looking for the "electric
Post a Comment
Read more