The International Monetary Fund or IMF, an organization of 190 countries, working to foster global monetary cooperation and ensure financial stability, has released a report claiming that the use, adoption and popularity of cryptocurrencies are higher in corrupt countries.
Crypto and Corruption
The new IMF report appears to provide some insight into the use of crypto in countries considered inherently corrupt. The regulatory coalition pointed out that the huge increase in the popularity of cryptocurrencies has both negative and positive effects. The IMF report said:
“The pseudonymity of crypto-assets makes them a potential vehicle for illicit flows, including flows of proceeds of corruption. This pseudonymity is not an intrinsic feature of the underlying technology, but rather a choice made in the design and practice of most crypto-assets in existence today.
The IMF revealed that it surveyed more than 110,000 people in around 55 countries to find out what they thought about crypto and its use. He organized surveys of around 2,000 and 12,000 people in each of these countries to examine the impact of cryptocurrencies on the mindset of investors. This study also revealed:
“Residents of countries with a well-developed traditional financial sector may be less likely to feel the need for crypto.”
The IMF expresses its concerns
The IMF has long expressed concerns about crypto assets. Kripteu Magazine first reported in January that the IMF had concerns over the adoption of Bitcoin as legal tender in El Salvador and that it do a lot of harm financial stability, financial integrity and consumer protection.
On the other hand, they also have called for a “comprehensive, consistent and coordinated approach” to regulating the crypto space and bringing justice to investors.