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IMF: Bitcoin has become the most popular instrument in conditions of financial instability

The International Monetary Fund (IMF) has observed a growing trend of residents in countries with strict financial regulations turning to Bitcoin for secure cross-border transactions. In times of financial instability, Bitcoin serves as a means of preserving wealth and facilitating payments. Particularly in developing nations facing economic difficulties, people are utilizing Bitcoin to bypass capital controls imposed by traditional banking systems and regulatory authorities.

Bitcoin has evolved beyond being solely a speculative investment. The IMF asserts that the largest cryptocurrency has seamlessly integrated into everyday financial transactions, serving as a gateway to operations in the global financial market.

“Bitcoin transactions offer individuals in high-inflation countries the opportunity to protect their savings and engage in international trade under conditions not feasible with local currencies. However, the lack of oversight and the anonymity associated with Bitcoin may complicate regulatory efforts to monitor and prevent illegal activities such as money laundering.”

The IMF emphasizes the need for a unified regulatory framework that addresses the unique characteristics of digital assets. Such measures would not only help mitigate regulatory risks but also allow for the utilization of digital currencies as tools for economic freedom.

In related news, the IMF previously shared that central banks from six sub-Saharan African countries plan to launch their own digital currencies by 2028.