In the midst of the ETF excitement, the International Monetary Fund's (IMF) Managing Director, Kristalina Georgieva, has firmly asserted that cryptocurrency does not qualify as traditional money.
Cryptocurrency: An Investment Vehicle
Georgieva, in an interview reported by Yahoo Finance on January 15, distinguished cryptocurrency as an "investment vehicle" with no direct comparison to conventional money. She emphasized the diverse levels of security and risk associated with this unique asset class.
Money vs. Assets Differentiation
Highlighting the need to differentiate between money and assets, Georgieva explained, "When we talk about crypto, we are actually talking about an asset class. It could be backed up, making it more secure and less risky, or it could lack backing, posing a riskier investment. But it is not exactly money. It's more like a money management fund."
Potential Rivalry with the U.S. Dollar
Delving into the potential competition between cryptocurrency and the U.S. dollar, Georgieva underscored the current dominance of the dollar in the size of the U.S. economy and the depth of its capital markets.
Miyuki
