The International Monetary Fund (IMF) published on Sunday, 23 August, a video explaining what cryptocurrency is, which instantly went viral. The IMF referred to cryptocurrency as “a special currency,” since it could “completely change the way we sell, buy, save, invest, and pay our bills.”
Benefits and Risks
The two-minute video attempts to outline cryptocurrency’s benefits and risks. It also states that the new digital currency “could be the next step in the evolution of money.”
The IMF’s video continues to explain cryptocurrency’s benefits in payments, such as by removing middlemen, lowering costs, and increasing transaction speeds. Some payment services now make overseas transfers in a matter of hours, not days. The technology can provide benefits beyond the financial system.
On the other hand, it warns of what it sees as risks, such as anonymity and volatility. The anonymity of many cryptocurrencies makes them vulnerable to use in money laundering and terrorism financing if no intermediary checks the integrity of transactions or the identity of the people making them.
The video ends with “If we can counter the risks, then this new technology or some variation of it can completely change the way we sell, buy, save, invest, and pay our bills. And who knows, this could be the next step in the evolution of money.”
Views and Comments
Many people have commented on the IMF’s video. One user wrote, “IMF learning fast. Global adoption is on its way.”
Another user tweeted, “Bitcoin is a necessary evolution of money, especially in a world where currency and transactions are becoming more and more digital. Central Bank digital currencies (CBDC) are inevitable. But they will be centrally controlled. Bitcoin is a way to combat that control.”
Many commenting took the opportunity to promote their favorite digital coins since the IMF’s crypto explanation video does not refer to any specific cryptocurrency.
The IMF organisation posted the video on its Twitter account. It garnered thousands of views, was retweeted 7k times, liked over 10k times, and received over 6k comments.