IMF policy to restrict Cryptocurrencies.

Contradictions continue to be issued by the IMF regarding crypto, especially in El Salvador's move to adopt Bitcoin as their legal currency. Is it true that the IMF does not like this new innovation?

Apparently, the IMF thinks central bank digital currencies (CBDCs) could be a better bet than crypto.

Kristalina Georgieva, managing director of the IMF, said in a new statement that CBDCs are gaining momentum after moving from conceptual discussions to actual experiments.

“Central banks are rolling up their sleeves and getting used to digital money. It's still early days for CBDCs, and we don't know how far and how fast they will go. What we do know is that the central bank is building the capacity to leverage new technology – to be ready for what may lie ahead.”

She noted that the IMF supports the 100 or so countries that are actively exploring CBDCs.

“If CBDCs are designed with care, they can potentially offer more resilience, more security, greater availability, and lower costs than any form of private digital money.”

That is clearly the case when compared to unsupported crypto assets which are inherently unstable. And even better-managed and regulated stablecoins may not quite match up to a stable, well-designed central bank digital currency.”

Recently, the IMF released a paper that includes an in-depth examination of six different CBDC projects.

The IMF has previously warned that crypto assets pose risks to consumer protection and financial stability and could undermine the banking sector's market share. The institute also calls for sweeping and synchronizing crypto regulations worldwide.

Indeed, in terms of usability, CBDC is a type of digital money that is different from crypto because it is only a "media" for fiat money to move in digital technology.

While crypto, it is entirely a new currency, especially crypto coins like Bitcoin, which can disrupt the “dominance” of fiat money like the US dollar to become mainstream in other countries.