On Aug. 24, 2020, the International Monetary Fund (IMF) released a cryptocurrency explainer video on Twitter, breaking down the concept of digital currencies.
The two-minute video, originally published in June 2018 and reposted today, has been widely popular on Twitter, garnering well over 546,000 views.
As per the explainer, digital assets will be the next step forward in the evolution of fiat. It added that crypto enables faster processing time, is more cost-effective, and has better safeguards for protecting sensitive info.
The video reiterates the views of IMF Managing Director Christine Lagarde, who addressed an audience at the Bank of England conference back in September 2017.
During the conference, Lagarde endorsed bitcoin and other cryptocurrencies. She asserted that they have as much of a future as the Internet.
She added that digital cash could displace traditional banking and challenge the monopoly of government-issued currencies.
IMF Video Stirs Up Crypto Community
Despite the IMF post offering positive sentiments about crypto as the next step in the evolution of money, many viewers expressed dissatisfaction with the explainer. Critics of the video cited that it focused mostly on the negative factors often associated with crypto.
For instance, the IMF mentioned that crypto transactions could be dangerous and attract “bad guys” to make use of crypto for their illegal activities.
Moreover, the video claims that crypto exchanges can’t process large volumes of transactions swiftly, which is false. The IMF also provided misleading info by referring to an individual’s private keys as ‘passwords.’
Tweeters were largely unimpressed with the video. Many enthusiasts argued that the IMF post failed to mention key industry terms such as decentralized ledger, blockchain tech, and names of top digital assets such as BTC and XRP.
The flawed explainer that consisted of an old informational stream prompted one Kraken strategist to respond to the post in a tweet stating:
“Provable scarcity is what makes Bitcoin interesting, you forgot to mention that.”
Another Twitter user reacted to the post by claiming that the IMF painted crypto as entirely negative and failed to mention vital aspects of the sector, such as mining, limited coin supply, and tokenization.
Some crypto enthusiasts viewed the IMF crypto explainer as a positive sign that the global institution wanted to bring digital assets to the public’s preview.
IMF Proposes Regulation of Crypto
According to IMF Managing Director Christine Lagarde, cryptocurrencies must be monitored to maintain stability and trust in the system.
In a CNBC interview back in April 2019, Lagarde asserted that the changing business models of traditional banks proved that crypto has a strong effect on the financial industry.
Judging from today’s video, the IMF seems to acknowledge the role of disruptors such as cryptocurrencies and their role in impacting the global economies.