IMF Managing Director Showered Appreciation Towards Cryptocurrencies at WEF

• She also joked about the “hate tweets” she got when the IMF voiced an objection.
• According to her, the President of El Salvador Nayib Bukele made the “sovereign decision”.

After the catastrophic collapse of the Terra ecosystem, the IMF’s managing director has declared that the world should not be discouraged from accepting cryptocurrencies. Kristalina Georgieva was effusive in her appreciation of digital assets during her speech at the World Economic Forum in Davos.

Proper Regulation and Education Necessary

When it comes to digital assets, the IMF’s director didn’t identify which ones she preferred above the others. Rather, she said that not all cryptocurrencies should be regarded the same, and legislation that safeguards consumers and assists them in making educated choices is essential.

It is evident that Georgieva is concerned about Bitcoin being used as daily money, despite her favorable evaluation. To be more precise, she expressed sympathy for people who lost money due to the collapse of the UST stablecoin and noted that a lack of knowledge about “this new investment world” is a major issue.

On the subject of stablecoins, she stated such assets must be adequately backed by assets kept in reserve—meaning they may be exchanged for fiat without causing the whole ecosystem of stablecoins to crumble.

She also joked about the “hate tweets” she got when the IMF voiced objection to nations that had embraced Bitcoin as legal money. According to her, the President of El Salvador Nayib Bukele made the “sovereign decision” in September to adopt the Bitcoin Law. Still, she argued that this does not automatically make it a wise decision. Many nations are investigating central bank digital currencies throughout the globe in the expectation that they would modernize payment systems.