The International Monetary Fund (IMF) recently reposted an explainer video about cryptocurrency from 2018. As expected, the post was viewed many times despite being old, with many alleging it to be misinformed and ‘wrong’.
— IMF (@IMFNews) August 23, 2020
The video, which was retweeted on August 24, had received thousands of likes and comments, most of them critical of the IMF. This may be because some of them do not fully trust the global financial authority, while others provided other information that they feel have been left out by the video. Hence, the negative comments.
Of course, more people understand cryptocurrency today than they did in 2018, which was when the video was originally produced. That is why many found some incorrect information, especially in the terms used and in the examples given.
For instance, the video said that if the user loses his password — instead of private keys — he will not be able to retrieve it forever. One user also pointed out that even though there are no more traditional middlemen involved in any transactions, the network still takes a fee for any transfer that occurs.
Crypto ‘Risks’ Not Negative
Others were also quick to say that the risks presented in the video are not negative. In fact, these were the very reasons that enticed them to cryptocurrencies.
For example, the IMF said in the video that because transactions are anonymous and untraceable for some cryptocurrencies, criminals can use them to move money without the authorities getting a whiff of them. But some said that this was precisely what they like about the asset class.
Some also believe that the volatile nature of cryptocurrencies is what makes them a good investment option.
However, the IMF is true that most functioning blockchains cannot process large amounts of transactions yet. Moreover, cryptocurrencies still struggle in terms of mass adoption, even though some would argue that it will not be the case for long.
IMF Fedcoin Conspiracies
Along with the said comments were the surfacing of conspiracy theories stating that IMF is going to create its own “ Fedcoin”, as many redditors like to call it. Some even agree that the conspiracy coin is even “inevitable” and that it’s not as bad as it sounds.
Guess what. Bitcoin also takes a cut. And so do most if not all other cryptocurrencies. The only difference is that the cut is automated. Otherwise, there would be no incentive to do mining.
— kebman (@kebman) August 24, 2020
Many would have called out those who alleged the Fedcoin conspiracy, had it not been for another post that the IMF tweeted during the same day.
Aside from the said explainer video, IMF also retweeted a blog which discussed stablecoins and central bank digital currencies (CBDCs). It also introduced and promoted synthetic central bank digital currency (sCBDC), which it claims to offer “ significant advantages” over CBDC.
The IMF added,
To the extent that central banks wish to offer a digital alternative to cash, they should consider sCBDC as a potentially attractive option.
Nevertheless, some users commended the IMF for the video, saying that they are moving in the right direction. Otherwise, the tweet would never have reached at least 7.1k likes and over 4.7k retweets at the time of writing.