Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
The IMF called the global economic outlook “bleak and more uncertain” but is not concerned about cryptocurrencies.
- Cryptomarket crash has had no effect on the financial system, says IMF.
- The organization warned of a possible global recession.
- IMF anticipates further economic slowdown and high inflation.
Although digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency currency is a medium of exchange that defines value. markets have seen pronounced turmoil in recent weeks, global financial stability has not been affected, the International Monetary Fund (IMF) said.
In a informe published on Tuesday, the Washington-based financial organization noted that the global economy is currently facing several challenges, including high inflation, ongoing COVID-19 blockades and the continuing fallout from the war in Ukraine. However, cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. markets are not a concern.
In his publication, entitled “ Global economic outlook update: gloomier and more uncertain “The IMF acknowledged that the digital currencies sector, such as the Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. has experienced a “ dramatic sale that has resulted in huge losses “for investors. However, this slowdown has not harmed the financial system.
“ Spillover effects on the financial system in general have been limited so far.” said the institution, according to citó CoinDesk .
IMF warns of possible global recession
Although it did not make specific mention of any crypto projects, the IMF did make reference to the implosion of the stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. algorithmic of Earth UST, as well as to recent insolvency cases, when he addressed the collapse of cryptocurrencies. The fund Three Arrows Capital, and the crypto lenders Celsius y Voyager have recently filed for bankruptcy.
However, the cryptomarket turmoil was not the main topic. In its report, the IMF warned about the risks of a recession after announcing a cut to its global growth projections for 2022 and 2023. According to coverage from CNBC the organization described the global economic outlook as ” bleak and more uncertain “.
The risk of recession is particularly prominent in 2023, when growth in several economies is expected to bottom out, household savings accumulated during the pandemic will have diminished, and even small shocks could cause economies to stagnate.
The IMF lowered its growth expectations for the global economy to 3.2% this year and said it expects it to slow further by 2023, to a GDP rate of 2.9%. The revisions mark a reduction of 0.4 and 0.7 percentage points, respectively, from their April projections, remember CNBC . The media adds that low growth prospects in the U.S., China and India drove the discouraging broader revision for the global economy.
Economic inflation remains high
IMF officials also anticipate that inflation will remain high worldwide, reaching 6.6% in advanced economies and 9.5% in emerging economies. In this regard, the financial advisor and director of the IMF’s Monetary and Capital capital is most commonly defined as the large sum of money you would use to invest. Markets Department, Tobias Adrian, commented to the news media:
Inflation a general increase in prices and fall in the purchasing value of money. will take longer to fade and the overall magnitude of inflation is expected to come later this year.
In its report, the institution stressed that as food and living prices rise, controlling inflation should be the number one priority for policymakers.
The comments come just a few days after the European Central Bank to announce its first interest rate hike in 11 years in a bid to curb inflation as the euro reaches parity with the U.S. dollar. The move joins others such as the Bank of England and the U.S. Federal Reserve (Fed) that have also implemented rate hikes.
This week the Fed is expected to announce another interest rate hike, which has put some pressure on the markets. Bitcoin and major cryptocurrencies have retreated in price on Tuesday amid IMF statements and expectations of the Fed announcement. The global cryptocurrency market an area or arena, online or offline, in which commercial dealings are conducted. fell below $1 trillion and shares of several major cryptocurrency companies have also experienced losses in the last 24 hours.
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Article by Hannah Estefania Perez / DiarioBitcoin
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