On February 9, the American professional baseball team based in Washington, D.C., the Washington Nationals, announced the team has partnered with Terra, the open-source blockchain platform and decentralized autonomous organization (DAO). The Washington Nationals detail that the team is a “leading innovator” and is “consistently introducing new technologies to enhance the fan experience.” Washington Nationals Ink Long-Term Deal With Terra Major League Baseball (MLB) team the Washington Nationals has partnered with the blockchain platform and DAO Terra, according to an announcement published by the team on Wednesday. The deal with Terra follows a slew of sports-related deals with crypto firms, but the MLB team will be the first to partner with an open-source blockchain project. In addition to the partnership, the algorithmic stablecoin UST that’s issued on the Terra blockchain will be “accepted as a payment method at Nationals Park as early as next season.” “The Nationals continue t...
The International Monetary Fund (IMF) says that crypto assets, like bitcoin, are privately issued with substantial risks, and “Making them equivalent to a national currency is an inadvisable shortcut.” The crypto community disagrees.
IMF Claims Bitcoin Is Privately Issued Crypto With Substantial Risks, Inadvisable for Use as Legal Tender
The International Monetary Fund tweeted about crypto assets on Saturday, asserting that they are privately issued, come with substantial risks, and are inadvisable for use as legal tender. The IMF wrote: “Privately issued cryptoassets like bitcoin come with substantial risks. Making them equivalent to a national currency is an inadvisable shortcut.”
The IMF’s tweet references a blog post written on July 26 by two of its legal counsels, as Bitcoin.com News previously reported. In the blog post, titled “Cryptoassets as National Currency? A Step Too Far,” the authors warned of the risks of making bitcoin legal tender as El Salvador did. One of the concerns mentioned was that “monetary policy would lose bite,” since “Central banks cannot set interest rates on a foreign currency.”
Many people on social media mocked the IMF for calling bitcoin “privately issued.” One Twitter user pointed out that the IMF is “framing BTC (a public, open-source protocol) as a ‘privately issued’ asset to discredit its legitimacy over national currencies, which are actually privately issued.”
Some argued that fiat currencies come with more “substantial risks” than bitcoin. “Government-issued fiat assets like the U.S. dollar come with substantial risks. Especially when they are loaned out by intergovernmental organizations with a history of bankrupting countries,” one Twitter user opined.
Noting that bitcoin and crypto are competing as an international reserve asset, a third Twitter user described:
The IMF is getting nervous because companies and individuals are diversifying their wealth into bitcoin and cryptocurrencies instead of their special drawing rights (SDR).
Some people stated that the IMF is becoming an irrelevant organization. DTAP Capital founder Dan Tapiero predicted: “The IMF won’t exist within 10 years.”
What do you think about the IMF’s statement on bitcoin? Let us know in the comments section below.
Comments
Post a Comment