CEO of Input Output Global and founder of the Cardano Foundation, Charles Hoskinson, has taken to Twitter to comment on the recent warning of the International Monetary Fund against adoption of cryptocurrencies by emerging markets.
Crypto adoption threatens financial stability of emerging countries: IMF
On October 1, Reuters news agency reported that the IMF warned that “cryptoization” of emerging countries can in the future undermine capital controls and upset the current financial stability in those regions.
Apparently, the regulator issued the warning, responding to the adoption of Bitcoin by El Salvador and other countries in Latin America considering following in their footsteps. Besides, according to the data provided by Chainlink, crypto adoption is gaining steam in such counties as India (despite the crypto ban), Pakistan and Vietnam.
According to IMF, adoption of cryptocurrencies in the third world is being driven by, among other reasons, unhealthy macroeconomic policies and inefficient payment systems.
The regulator believes that among the factors that contribute to the “cryptoization” in emerging countries are low credibility of the population towards central banks and the local banking systems that are weak at the moment. Other reasons are high inflation and lack of stability of local currencies.
The IMF also stated that crypto can threaten local fiscal policy and contribute to tax evasion. The regulator then urged the governments of developing countries to consider issuing CBDCs to respond to the growing crypto adoption.
Charles Hoskinson criticizes IMF
Founder of the third largest blockchain and the most popular Proof-of-Stake platform, Cardano, tweeted in response to the IMF statement. He said that that crypto will save these countries from hyperinflation and highly centralized rails that the IMF and local central banks can control unlike decentralized cryptocurrencies.
And by collapse, we mean they won’t be laden with hyperinflation and highly centralized rails that are under our control. https://t.co/4eUgFvtFmP pic.twitter.com/2KvQf78yAu
— Charles Hoskinson (@IOHK_Charles) October 12, 2021
Edward Snowden calls CBCD a “perversion of cryptocurrency”
As reported by U.Today earlier, the famous US whistleblower who resides in Russia at the moment bashed central bank digital currencies in his tweet. In particular, he pulled focus on the digital dollar that the Fed Reserve considers launching.
Snowden referred to CBDCs as “perversion of crypto” and “cryptofascist currency”, since the so-called FedCoin will bring down savings of average Americans down to zero, forcing them to spend their CBDC quickly.
Besides, the Fed Reserve, Snowden said in his tweet, will have a total control of people’s money and it will be the Fed who will decide “if and how” they can spend it. Thus, the money in bank accounts will not belong to US citizens, he opined.