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HomeCRYPTOCURRENCIESThe IMF concludes that "in the most corrupt countries there is greater...

The IMF concludes that “in the most corrupt countries there is greater use of cryptocurrencies” • ENTER.CO

The International Monetary Fund (IMF) conducted a study in which it analyzed the behavior of 55 countries regarding the use of cryptocurrencies and reached a conclusion that may be obvious to some or a complete discovery for others. The institution observed that in those countries whose States tend to establish strict capital controls, that have high inflation rates or that are perceived by their citizens as corrupt, the popularity of cryptocurrencies tends to be greater than in nations that have with healthier political and financial systems.

The foregoing led the IMF to underline the urgency of regulating the cryptoactive industry and forcing it to develop identity verification methods to protect token owners from eventual or possible fraud.

The group’s suggestion is prudent; however, it seems to forget the main cause that drives the adoption of these digital assets, because instead of making a direct call to the institutional framework and establishing sanctions for officials involved in corruption networks, the institution preferred to emphasize the need to collect more data “to better understand the dynamics that drive the phenomenon.”

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The IMF has already made its position clear on the use of cryptocurrencies on several occasions. When the president of El Salvador, Nayib Bukele, announced that Bitcoin would become legal tender in the country, the group did not hesitate to express concern about a government that validated and legitimized cryptocurrencies.

According to the concept of the organization, encouraging the adoption of a new system supported solely by the trust that many have placed on blockchain technology, feeds the risks of unleashing a real threat to global financial stability, as it is a system exposed to “fraud, cyber attacks, money laundering and financing of terrorism”.

The IMF shared the report publicly and recommended that its reading should be “interpreted with caution”, given the small size of the sample, made up of between 2,000 and 12,000 respondents in each of the countries where the data was collected.

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