Coinspeaker
Bitwise CIO Shares 3 Key Takeaways from IMF Bitcoin Payments Report
Bitwise CIO Matt Hougan has an opinion on the Bitcoin (BTC) payments report that was published by the International Monetary Fund (IMF) earlier this month and he has taken to X to share them.
Bitcoin as a Tool for Economic Freedom
According to the Bitwise executive, the leading cryptocurrency by market capitalization is largely used by residents of countries that have limited access to the broader global economy.
These are nations that are suffering from capital controls and then decide to turn to BTC as a release value. Hougan highlighted this key takeaway to support a repetitive statement that appeared in the IMF Working Paper.
The foreign agency noted that “the magnitudes of the estimated Bitcoin cross-border flows are sizeable with respect to several countries’ GDP, especially in those which experience relatively small capital flows.”
Notably, this outlook is not unfounded considering that many individuals, governments, and even some organizations view Bitcoin as a tool for economic freedom. This can be seen with the BRICS bloc where countries like Brazil, Russia, India, China, South Africa, and Saudi Arabia which recently became part of the group, are contesting dollarization by pushing the use of Bitcoin as a payment option.
Hougan’s next takeaway borders around the United States’ slow acceptance and adoption of Bitcoin payments in comparison to traditional capital flows. He stated that the US is an extreme outlier in this regard, noting that:
“Our perspective, therefore, does not reflect everyone’s reality.”
US and IMF Stifling Stance on Bitcoin
A chart in the paper showed a comparison of cross-border Bitcoin flows vs. flows into traditional investment products by GDP. The US appears to have the most extreme reading for its dominance in traditional funds. While countries like Venezuela and Ukraine are some of the largest users of cross-border Bitcoin settlements.
Noteworthy, the US stance on Bitcoin is easily reflected in how authorities in the region crack down on crypto exchanges and other digital asset projects. Binance and Coinbase Global Inc (NASDAQ: COIN) had a tough time with the Securities and Exchange Commission (SEC) in June 2023. Both leading exchanges were charged by the agency for operating as unregistered brokers.
Since that time till now, many other exchanges have suffered a similar fate, underscoring the US commitment to water down crypto adoption.
Hougan’s final key takeaway from the IMF Working Paper hinges on the fact that the organization is interested in Bitcoin. He highlighted the resources and effort put into the research paper as proof of this claim. If this is the case, it would be so to say that the IMF has had a change of stance.
In the past, the IMF cautioned nations like El Salvador that legalize the use of Bitcoin as a legal tender. The agency recommended that El Salvador remove Bitcoin as a legal tender within the country. The Central American nation is currently seeking a loan from the IMF and the condition attached to it is that it adjust its crypto-Bitcoin law.
Unfortunately, this lends a unique twist that negates the claims that the IMF is positively interested in Bitcoin.
Bitwise CIO Shares 3 Key Takeaways from IMF Bitcoin Payments Report
