Matt Hougan, the Bitwise CIO, expressed his views on the Bitcoin payments report recently released by the International Monetary Fund. He chose platform X to communicate his thoughts to the public.
Bitcoin as a Tool for Economic Freedom
Based on the Bitwise executive’s statement, the first cryptocurrency in terms of market value is primarily employed by people from nations with restricted engagement in the international economy.
In simpler terms, there are countries experiencing capital controls who look towards Bitcoin as an alternative form of value during this time. Hougan emphasized this point, which was consistently mentioned in the IMF Working Paper.
The external organization pointed out that the estimated Bitcoin transfers between countries are substantial in comparison to the GDP of many nations, particularly those that typically see less financial inflow.
Significantly, this perspective is valid given that numerous people, governments, and certain organizations regard Bitcoin as a means to economic liberation. This is evident in the BRICS bloc, comprised of countries such as Brazil, Russia, India, China, South Africa, and Saudi Arabia, who have recently joined the group and are challenging dollar dominance by promoting Bitcoin as a viable payment method.
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
An illustration in the article displayed the contrast between outflows of Bitcoin across borders and investments in conventional products, based on each country’s GDP. The United States stands out with a significant lead in traditional investment funds. On the other hand, countries such as Venezuela and Ukraine exhibit high levels of Bitcoin settlement transactions.
Significant indications of the US regulatory stance towards Bitcoin can be seen in the way law enforcement in the country have been targeting crypto exchanges and digital asset initiatives. In June 2023, notable figures like Binance and Coinbase Global Inc (NASDAQ: COIN) faced challenges from the Securities and Exchange Commission (SEC). The SEC accused these leading exchanges of functioning without registration as brokers.
From that point up until the present day, several other cryptocurrency exchanges have experienced similar misfortunes, emphasizing the United States’ determination to hinder the growth of crypto usage.
The crux of Hougan’s conclusion from the IMF Working Paper lies in the organization’s apparent interest in Bitcoin. He underscores their extensive research as evidence of this newfound focus. In essence, it seems that the IMF has shifted its perspective on Bitcoin.
Previously, the IMF warned countries including El Salvador against making Bitcoin valid currency. The organization advised El Salvador to repeal Bitcoin’s legal status within their borders. At present, El Salvador is trying to secure a loan from the IMF, and one of the requirements is for them to revise their crypto-Bitcoin legislation.
Sadly, this aspect undermines the assertion that the IMF holds a favorable view towards Bitcoin.
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2024-04-23 13:55