Kristalina Georgieva said that cryptocurrencies are an asset class, not money, and therefore it is unlikely that Bitcoin will be able to displace the dollar. The head of the IMF announced this in an interview with Yahoo Finance.
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Georgieva noted that a distinction must be made between money and assets.
“Cryptocurrencies can be secured, then investments in them are safer. If there is no collateral in a cryptocurrency, then investing in it is riskier. But it's not really money. It’s more like a wealth management fund,” Georgieva explained.
The IMF director also disagrees with industry participants who believe that the recent approval of spot bitcoin exchange-traded funds (ETFs) in the US will encourage mass adoption the first cryptocurrency.
She also added that she is in no hurry to convert her dollars into another currency. “This doesn’t mean you shouldn’t diversify your investments. But I wouldn’t worry about Bitcoin competing with the dollar,” added the head of the IMF.
Recall that Morgan Stanley came to the conclusion that Bitcoin and digital currencies of central banks will be able to de-dollarize the world .