Gita Gopinath, vice president of the International Monetary Fund (IMF), said crypto assets are risky and have kept their distance from the sector.
“I totally got away from it,” Gopinas said in an interview at the World Economic Forum annual meeting in Davos. [crypto]. But that’s just me and my level of risk aversion.
IMF officials also pointed out the weaknesses the ‘speculative’ asset class has seen over the past few weeks, highlighting that it is not an ‘easy return’ market. She said, “In about six months, it has grown from a market of around $3 trillion to a market of $1.5 trillion. It’s a very fast move. It’s not an easy return on investment. So it’s very risky.”
In other words, Gopinath is of the view that risky asset classes like crypto should be regulated.
There is not enough volatility to block cryptocurrencies.
IMF Managing Director Kristalina Georgieva Reportedly Investors must make informed decisions as the Terra-led collapse is sweeping the market, he said at the Summit. “The less support you have, the more you have to be prepared to risk this exploding in your face,” she said.
Administrators and officials have called for immediate regulation of crypto assets after the Terra UST stablecoin de-peg has led to a spiraling downward trend. At the time of the report, the global cryptocurrency market capitalization was close to $1.3 trillion. coin gecko.
However, Georgieva maintained the view that not all virtual assets pose the same risk and cannot be completely abandoned. A representative from an international financial institution said: “This gives us all faster service, much lower costs and more inclusiveness, but only if we separate apples from oranges and bananas.”
In other words, Georgieva doesn’t believe that Bitcoin can serve as money as “not a stable store of value” despite being called a coin.
Especially because of the short recovery period for BTC. Bitcoin fell 3% below the critical psychological level of $30,000. last 24 hours.
Due to volatility, François Villeroy de Galhau, Governor of the Central Bank of France said “Citizens have lost trust in cryptocurrencies.” CNN quotes Galhau as saying, “Cryptocurrency is not a reliable means of payment. Someone has to take responsibility for its value and it should be universally accepted as a means of exchange. no,”
Despite the liquidity leak, crypto advocates are especially at the WEF meeting this year. Free Bitcoin Pizza Shop Reportedly The early days of the Summit were decorated with “Liquidity Lounge”.
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