IMF Chief Kristalina Georgieva: Cryptocurrencies Are Not Exactly Equivalent to Traditional Money

IMF Chief: Cryptos Are “Not Exactly Money”

Kristalina Georgieva, managing director of the International Monetary Fund (IMF), stated that cryptocurrencies are not on par with the Dollar in terms of importance. While the US SEC recently approved 11 spot Bitcoin exchange-traded funds (ETFs), Georgieva emphasized that cryptos should be seen as investment vehicles rather than actual money. In an interview with Yahoo, she highlighted the need to differentiate between money and assets, stating that crypto is an asset class and more like a money management fund. Georgieva also mentioned that digital assets backed by something tend to be more secure and less risky. However, she clarified that diversifying one’s portfolio doesn’t mean replacing Dollars with another currency.

Analyst: “Buy the Dip”

Following the approval of Bitcoin spot ETFs, Gautam Chhugani, a senior analyst from Bernstein, advised investors to take advantage of the Bitcoin dip. He recommended buying during minor selloffs and focusing on the new Bitcoin adoption cycle due to the significant upside potential. Alesia Haas, Coinbase’s Chief Financial Officer, sees the ETF approvals as a milestone for the crypto industry. Haas believes that this development will attract trillions of previously inaccessible Dollars to crypto assets and Bitcoin.

Hot Take: IMF Chief’s Perspective on Cryptos

In a recent interview, IMF Managing Director Kristalina Georgieva expressed her view that cryptocurrencies are not equivalent to traditional forms of money such as the Dollar. According to Georgieva, cryptos should be regarded as an asset class rather than actual currency. She emphasized the importance of distinguishing between money and assets when discussing cryptocurrency. Despite recent SEC approvals for Bitcoin ETFs, Georgieva maintains that diversification is crucial but does not mean replacing Dollars with other currencies. These comments were made shortly before the SEC’s announcement, highlighting the ongoing discussion surrounding the role of cryptocurrencies in the financial landscape.