IMF Director: Bitcoin cannot be considered money - Kakiforex.com - Financial Market Media No. 1 in the World IMF Director: Bitcoin cannot be considered money IMF Director: Bitcoin cannot be considered money
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July 30, 2021

IMF Director: Bitcoin cannot be considered money

 During the past day, the bitcoin exchange rate has not changed. The quotes of bitcoin are still located near the upper border of the side channel, and traders and investors are wondering what to do next. We have already noted several times the importance and significance of the $40,700 level. From our point of view, the future prospects of BTC depend on this level. Thus, we can say that there has been a rebound from this level. If so, then a new powerful downward movement is expected to the level of $29,700, which is the lower boundary of the side channel. We have also already noted that the last round of cryptocurrency growth is somewhat accidental, since the fundamental background has not changed in recent weeks. However, faith in bitcoin and its growth can once again play into the hands of this cryptocurrency. But we are still inclined to a corrective scenario.


At the same time, the head of the International Monetary Fund, Kristalina Georgieva, said that bitcoin cannot be considered money. In her opinion, the cryptocurrency may become a single means of payment in the future, but so far it is still very far from such an exalted status. As for El Salvador, where the authorities allowed the use of bitcoin along with the dollar as a state means of payment, the head of the IMF believes that this will complicate the process of collecting taxes and forming prices for various goods and services. Ms. Georgieva also noted that state digital currencies will become the most secure form of payment. Earlier, the IMF has already warned that the use of cryptocurrency as a state means of payment carries a number of risks for the economy. According to the IMF experts, countries that use bitcoin as a national means of payment will face difficulties in forming prices, as well as the inability to fight terrorism and money laundering. Thus, the IMF admits that bitcoin will continue to develop, conquering the traditional financial system, but warns that for states, the deep integration of bitcoin will mean a number of risks and problems. However, all this was known for a long time without the IMF. We have already said that bitcoin and its "counterparts", by and large, interfere with any state, since it is extremely difficult to track all the movements of all coins, as well as to find out what profit this or that entrepreneur received from investing in bitcoin, in order to then pull taxes off him. Thus, bitcoin can become a real problem for the tax authorities. That is why a number of large countries of the world have already completely banned bitcoin or its individual spheres, such as mining. Some countries are considering tightening the regulation of the circulation of cryptocurrencies. One way or another, central banks and governments of many countries of the world are unlikely to allow their own currencies to be displaced.


Technically, bitcoin has worked out the target level of $40,700. The other day there was a small pullback down, but at the moment bitcoin is again in an upward movement. We still expect bitcoin to fall back to the level of $29,700 and try to overcome it again. Therefore, we believe that sales are more relevant now, at least until the $40,700 level is overcome.