Raghuram Rajan Sees Future in Cryptocurrencies

‘Despite fluctuating values, Cryptocurrencies have a potential future. These digital assets might find a way to become effective means of payment,’ noted Raghuram Rajan, the former Reserve Bank of India (RBI) Governor and chief economist for the IMF, at the Reuters Global Markets Forum. 

However, Rajan believes that for the positive trend around cryptocurrencies to continue the digital assets will have to find a proper use case. “Cross-border payments is one area which is wide open, because of the huge transaction cost,” he added. 

The crypto industry in India is on a massive surge. Ranked second in the Global Crypto Adoption Index 2021, the number of crypto investors in India has grown from 5 million in 2018 to over 15 million in 2021. With over 90 lakh users and 60% of the market share, CoinSwitch Kuber is India’s largest crypto exchange. 

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Cryptocurrencies as Digital Assets 

Currently a Professor of Finance at the University of Chicago Booth School of Business, Rajan hinted at the possibility of cryptocurrencies being classified as digital assets. “Right now, in this heady environment with asset prices really picking up, many cryptos are also being valued — not so much as a means of payments — but as assets in their own right,” he noted. 

The crypto exchanges in India have for long requested the government to define cryptocurrency as a digital asset rather than a currency. Experts believe this will help the government address the concerns of financial risks associated with it. 

Besides, the renowned economist threw much of his weight on well-regulated stablecoins and expressed urgency in bringing forth appropriate regulations. Though remaining skeptical on what drives their valuation, Rajan said that the ‘Cryptocurrencies have a potential future, particularly well-regulated stablecoins.’

Stablecoins are cryptocurrencies whose price is linked to an underlying asset such as gold or national currencies like the US dollar. These assets are similar to any other cryptocurrency but bring forth price stability. 

What is the Government’s Stance so far?

In a recent interview with Economic Times, Finance Minister Nirmala Sitharaman said that the legislation on cryptocurrencies is nearly complete and is currently awaiting the cabinet’s approval. The FM reiterated that the government is not against cryptocurrency and is looking at ways to help India’s fin-tech sector. 

“We cannot be moving ahead as if this doesn’t exist. We are not saying no to cryptocurrency. We are saying we will have to see how this technology can help fin-tech to maximise the potential it has.” she added. 

Amid China’s crackdown on cryptocurrency, the FM noted that India is ideally located to attract businesses moving out of China. 

P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.

The past week in world affairs has been nerve-wracking. Even for someone sitting a thousand miles away with nothing to give or take, the happenings in Afghanistan were heart-wrenching. 

Footage of young men clinging to planes, fleeing likely persecution. Millions of families not knowing what lies ahead for them. Women disempowered and children left to fend for themselves. The agony is real. Leaving the political implications aside, the economic misery clouding the future of Afghanistan, the graveyard of empires, is pretty obvious. 

(Image obtained by Defense One shows hundreds of Afghans inside a US military C-17 Globemaster III flown from Afghanistan to Qatar. Photograph: Courtesy of Defense One/Reuters)

The Big Picture: Afghanistan’s Current State of Economic Affairs

Why are we talking of the economic plight of over 40 million Afghans in a blog that covers cryptocurrencies? Well, there is a reason. We’ll get to that in a bit. 

In March of this year, even before the present turmoil, the World Bank described Afghanistan’s economy as “shaped by fragility and aid dependence.” 75% of the government’s public spending was funded from international grants rather than its own revenue. 

After the Taliban took over Kabul, all donors – including the IMF and the US – have suspended billions of dollars in aid. The net result? A ghastly scenario with a nationwide cash shortage, plunging currency, and rapidly rising food prices. 

Visuals showing hundreds of Kabul residents crowding outside empty banks to withdraw their savings have gone viral. “There’s no bank I can go to right now, no ATM,” reported Ali Latifi to CNBC, a journalist born and based in Kabul. Meanwhile, Western Union has suspended all money transfer services. 

The looming economic woes, exacerbated by the ongoing events and a closed border, are furthering the humanitarian crisis in Afghanistan, rendering the Afghans helpless. However, there is a tiny little silver lining to someone like Farhan Hotak, a 22-year old Afghan Instagram Vlogger, who has invested in cryptocurrencies. 

Bitcoin: A Sliver of Hope 

The scope of bitcoin (and other altcoins) is much wider than what cryptocurrencies are to us in stable economies – an opportunity to invest and earn. As reported by CNBC, for Farhan Hotak and many others, investing in crypto has been a measure to safeguard wealth against economic instability. 

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Though crypto won’t buy them food and other basic supplies, it gives them protection against spiralling inflation and access to the global economy which would otherwise be impossible. Most importantly, it gives them an opportunity to bet on themselves and their futures.  

“I’m interested in the crypto world, because I have earned a lot, and I see a lot of potential in myself that I can go further,” Farhan noted.

Farhan isn’t alone in his thinking. Last month, just before the Kabul coup in the land-locked country, web searches for “bitcoin” and “crypto” rose sharply. Moreover, the Global Crypto Adoption Index for 2021 released by Chainalysis puts Afghanistan at the 20th spot in a list of 154 countries indicating soaring crypto popularity among Afghans.  

Bitcoin may not fix everything wrong in today’s Afghanistan. But for many people in war-torn countries and crumbling economies, Bitcoin is a sliver of hope. An alternative to an existing financial system that reeks of legacy issues from being exclusivist and undependable. 

P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.

Amid a massive bull run in crypto assets this year, India has ranked second in crypto adoption globally. Much of this good news stems from the fact that India’s younger population, especially between the age of 18 and 32, are finding crypto to be a very attractive asset to invest in. 

According to a report by Chainalysis, a leading blockchain data platform, crypto adoption saw worldwide growth of over 881% in 2021. Meanwhile, global adoption grew by a whopping 2300% since the third quarter of 2019. 

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Emerging Countries Lead the Way

The Global Crypto Adoption Index developed by Chainalysis ranks 154 countries to study the adoption of cryptocurrencies globally. 

Taking a major turn from last year, this year’s index indicates that emerging countries like India, Vietnam, and Pakistan have the highest rate of crypto adoption. In 2020, Vietnam was ranked number 10 whereas India and Pakistan did not make it to the top 10. However, Vietnam, India and Pakistan have respectively grabbed the top 3 spots for 2021.

(Global Crypto Adoption Index (2020 vs 2021). Image: Chainalysis)

Meanwhile, Ukraine, Russia, and Venezuela – the leaders of 2020 – have slid down considerably. The obvious missing case from this year’s chart has been China (from 4th position in 2020). China’s disappearance from the top 10 is only logical considering its severe clampdown on the crypto industry. 

The emerging economies outperforming the fiat-rich developed countries is good news. However, the icing on the cake for crypto enthusiasts lies elsewhere. Faster crypto adoption among smaller countries like Nigeria, Kenya and Togo gives crypto its true shine. Even amidst a crackdown, peer-to-peer bitcoin trading in Nigeria has grown to $204 million, the largest among all of Africa. 

Why the Sudden Surge in Crypto Adoption?

P2P (Peer-to-Peer) Trading is the primary force behind crypto’s surge in global popularity. Chainalysis noted that the root cause behind the sudden interest in Bitcoin trading could be the present global financial crisis and its impact on vulnerable economies. 

Sharp devaluations and strong inflationary pressures have eroded purchasing power and people’s trust in fiat currency. To counter this, masses tend to look towards alternative assets that function as a store of value. Bitcoin is certainly a perfect candidate for many. 

“Many emerging markets face significant currency devaluation, driving residents to buy cryptocurrency on P2P platforms in order to preserve their savings. Others in these areas use cryptocurrency to carry out international transactions, either for individual remittances or for commercial use cases, such as purchasing goods to import and sell”, as noted by Chainalysis.

P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing. 

Solana’s native token, SOL, currently the 10th largest cryptocurrency by market capitalization, made a gain of over 72% in just two days. The $20 billion valued crypto managed to break past its mid-May peak by breaching the $70 milestone

Errr, What is Solana? 

Solana is an open-source blockchain project that provides advanced decentralized finance (DeFi) solutions. DeFi applications aim to replace traditional financial systems like banks and exchanges by using cryptocurrencies. 

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Initially mooted in 2017, Solana was launched by Anatoly Yakovenko in March 2020 to solve the Blockchain Trilemma. Termed by Vitalik Buterin, the founder of Ethereum, the Blockchain Trilemma is the challenge faced by developers while creating a blockchain that is decentralized, scalable, and secure. 

And Solana addresses all three challenges without compromising any. This makes it the most preferred go-to blockchain solution for developers building DeFi applications. 

One of the essential innovations of Solana that makes it distinct is the proof-of-history (POH)  consensus. Known for its incredibly short processing times, as of mid-2021, Solana supports 50,000 transactions per second (TPS) producing a new block every 400 milliseconds. 

The high-speed blockchain is often referred to as the ‘Ethereum Killer’. Solana can process nearly as many transactions in a month as Ethereum has in its entire history.

Reasons for Solana’s Bullish Run 

It’s pouring good news for Solana from all across the spectrum!

First, Solana’s price rush is coupled with the booming NFT sales. OpenSea, the largest NFT marketplace, hit over $1 billion in sales in August. 

The launch of the Degenerate Ape NFT collection on Solanart, an NFT platform that uses Solana, saw a sale of 10,000 cartoon apes in eight minutes. Following the news, Solana shot up 28% immediately. 

Besides, last week’s Wormhole Update launched by Solana Foundation triggered the massive surge in prices. The update allows integration between different types of blockchains on its network. 

In the same week, Mango Markets, a decentralized high-speed exchange powered by Solana raised $70 million successfully in crowdfunding. Solana is also home to Serum, another popular exchange, founded by crypto-billionaire Sam Bankman-Fried.

P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.

The growing popularity of cryptocurrencies in India and around the world has caught the attention of tax authorities. The US government recently passed an Infrastructure Bill that would raise $28 billion in tax revenues from crypto transactions to fund its infrastructure projects. 

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Besides cryptocurrencies, governments are eyeing ways to tax the rapidly growing NFT industry. According to a report by Economic Times, India’s tax department could soon levy a double tax on NFT transactions. Purchase of any digital assets could attract both equalization levy and GST (Goods and Services Tax). 

But wait, what is an NFT?  

Holding a Non-fungible Token (or NFT) represents digital proof of ownership of any real-world objects like art, music, videos and in-game items. By definition, non-fungible means that it is distinct and can’t be exchanged for something similar.

For instance, an original copy of a letter written by Mahatma Gandhi is unique and can be bought and sold online as an NFT. 

How does this work? First, the letter would be stored in a locker and an NFT with a digital signature unique to the letter would be generated. This NFT can then be sold online. The owner of the NFT thus holds legal rights to the original letters. 

NFT relies on the same programming foundations as that of cryptocurrencies. NFTs are stored on the blockchain, a distributed public ledger that records transactions. And most NFTs are part of the Ethereum blockchain. 

The NFT Boom 

The first half of 2021 saw an unprecedented surge in the sale of NFTs which stood at $2.5 billion, up from $13.7 million in the first half of 2020. 

The boom is largely aided by NFT marketplaces – platforms where NFTs can be stored, displayed and traded. OpenSea, Rarible, SuperRare, and Nifty Gateway are some popular universal digital-art oriented marketplaces. 

In the previous month, OpenSea accomplished $1.22 billion worth of NFT trade on its platform, a 950% month-on-month increase. Most NFT buyers view it as a collectible or an investment. 

More on the NFT Taxation in India

‘NFT, just like cryptocurrency, will attract the 2% equalisation levy as well as GST,’ noted Girish Vanvari from the tax advisory firm Transaction Square.

Equalization Levy is a direct tax imposed on foreign tech companies conducting business in India. So, any NFT transaction carried out by Indians on exchanges not based in India could attract the 2% levy. 

As there is no explicit clarification as yet with regard to taxation on cryptocurrency transactions in India, the speculated double tax on NFT is a wait and watch

P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.

ADA, the native token of Cardano, breached the $2 mark on Friday nearing its previous all-time high. According to CoinMarketCap, ADA is the 4th largest cryptocurrency by market capitalization, with a value of around $63 billion as of 14th August. 

The collective market value of all cryptocurrencies rose above $2 trillion after testing the waters for over 3 months. Bitcoin rallied at $48,000 on Saturday, the highest level since May 16, 2021. While XRP, Dogecoin and Binance Coin also saw quite an advance. 

Meanwhile, ADA saw the largest spike of nearly 45% in a single week and 1365% against the dollar in 12 months. Cardano’s massive upswing can be attributed to several factors, including strong bullish sentiments across the market, but most notably Friday’s announcement of the upcoming upgrade – Alonzo Purple. 

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What is Cardano’s Alonzo Upgrade?

Cardano’s Nigel Hemsley announced in a video that the much anticipated ‘Alonzo Purple’ upgrade will be launched on September 12. The upgrade aims to boost the Cardano project by enabling advanced smart contract solutions.  

The name Alonzo has been derived from the American Mathematician, Alonzo Church,  who played a pivotal role in establishing the foundations of theoretical Computer Science. 

Understanding Cardano

Since the inception of bitcoin in 2008 by Satoshi Nakamoto, the technology behind cryptocurrencies has undergone three stages of generational transformations. And Cardano is at the helm of the third and the latest round of innovations. 

Cardano, founded by Mathematician Charles Hoskinson, successfully replaces the energy-intensive Proof of Work validation deployed by bitcoin with the new and efficient Proof of Stake system. 

Why is Cardano the most promising cryptocurrency?

Besides being backed by the best minds in the blockchain world, Cardano’s Alonzo upgrade will give the cryptocurrency an edge over its immediate competitor and predecessor – Ethereum. 

Cardano is often referred to as the “Ethereum Killer”. Through the Alonzo upgrade, Cardano will now enable fully functional advanced Smart Contracts and DeFi solutions which was hitherto a monopoly of the Ethereum network. 

ADA’s relatively low transaction costs and higher efficiency coupled with a vibrant outreach programme make it the ideal cryptocurrency. Perhaps, Cardano’s social goal of banking the underdeveloped communities of Africa has drawn tremendous cheerleading from the crypto-community for it to succeed. 

P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.

Namaste India, 

We’ve achieved a new milestone. India is in her 75th year of Independence. This calls for a special round of celebration (glasses clinking, fireworks in the sky, pleasing melody in the background). 

And for all the crypto bugs out there, it’s time to remember folks who are striving hard to build this nation and make India the epicenter of innovation and excellence. 

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Let’s start this new journey by talking about someone who’d surely inspire you. Someone who is an exemplar for the young innovators of tomorrow (as young as the 7th graders!). And whose success is a pride to our country and a boon to the crypto community. 

Gajesh Naik, the 13-year old crypto-maverick from Goa is the center-piece of today’s article. 

So, what’s so cool about Gajesh’s story? 

Despite being too young to even sign a legal contract, Gajesh is the brainchild (quite literally!) behind a DeFi protocol that has managed $7 million in cryptocurrencies. At the age of 13, Gajesh is the chief architect of PolyGaj and StableGaj – decentralised applications (dApps) on the Polygon network that provides users access to crypto-investing. 

Wait, did I say ‘decentralised applications’? How did a 7th grader end up working on something only seasoned crypto users are expected to know about?

Be like Gajesh! 

While the first wave of COVID-19 pandemic and the following lockdown had us crippled, little Gajesh was busy rolling out content on YouTube. The lessons on coding were meant to educate primary school students from vernacular languages.  

At the age of 8, Gajesh began learning coding at bootcamps. And is a master in coding languages such as C, C++, Java, JavaScript, and Solidity. It was a 2018 International Blockchain Conference held in Goa that ignited Gajesh’s interest in cryptocurrencies. 

‘Being a relatively newer topic with less knowledge available in the public domain, Gajesh takes direct tutelage from professors of MIT and Stanford,’ said Siddhivinayak, Gajesh’s father. Today, with more than 23,000 followers on Twitter, Gajesh is not just a founder but also a leading influencer on all things crypto in India. 

India’s 100 is Secured.

Imagine what India has achieved and unlocked in the past 74 years! In 1947, hardly 15% of India’s population was literate. Today, a 13-year old can curate content for his peers, create a decentralized financial solution and sell NFTs to a global audience.

But of course, a lot more needs to be done. India’s stellar tech industry propelled by revolutionizing technologies like the internet and the blockchain can make all the difference. And several 13-year old Gajeshs are in the making to secure India’s dreams when she turns 100. 

Jai Hind! 

P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.

Football and cryptocurrency? The world’s deadliest combination besides coke and mentos. And who better than Lionel Messi to bring the two crazy worlds together. Die-hard football fans and crypto aficionados have something in common to cheer upon this week. 

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Lionel Messi’s Barcelona Exit 

Wait, how’s the 34-year old Argentinian footballer exiting Barcelona news for a crypto audience? Well, we’ll get to that shortly. First, we wouldn’t miss any opportunity to rant about football for a bit.  

Messi’s 21-year love affair with Barcelona ended on August 5th, 2021. The world’s greatest footballer exited after a teary-eyed press conference saying: ‘The club did not want to go into more debt.’ This broke the heart of every football fan around the world. 

However, it’s not all that blue. Lionel Messi is moving to Paris to play for France’s most dominant club – Paris Saint-Germain (PSG) in a €729,000 a week contract. And there’s more to it. Messi’s grand welcome package will include cryptocurrencies as part of the surprise deal. 

PSG Tokens Rally after Messi’s Announcement 

In a blazing attempt to build a vibrant fan community, PSG announced cryptocurrencies last year. The club created the $PSG Fan Tokens in January 2020 by partnering with Socios.com, a crypto platform. 

The tokens were initially issued only to fans. But like other cryptocurrencies, fan tokens can be traded on exchanges. 

The value of the token rose over 130% in the last 5 days amidst news of Messi joining PSG. Besides, the new sale of PSG tokens generated nearly 30 million Euros as reported by Reuters. The trading volume of the token exceeded $1.2 billion in just a few days. 

How are Cryptocurrencies Shaping the Game? 

The decentralized nature of cryptocurrencies is helping the world become equitable. 

Like other walks of life, football is much more than a few wealthy individuals/corporations that own and control the club. Football is a sport that belongs to everyone. Most notably, it belongs to the people who keep the sport alive – the fans.  

Today, fan tokens give people their rightful say. It gets them involved in decisions surrounding the club. By using a simple app, fans can decide from what message goes in the captain’s armband to who the winners of the end-of-season awards are. 

It will be interesting to watch how Messi, the legend with over 34 trophies to his name, will shape the future of football and the world of cryptos.

P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.

Last week, the US Senate introduced a trillion-dollar plus Infrastructure bill to upgrade the country’s infrastructure. Unexpectedly, the 2,700 pages long bill contained provisions relating to the crypto industry. 

The bipartisan bill, known as HR 3684, is at the heart of the Biden administration’s big push towards reviving the American economy. The bill allocates funds for roads, bridges, transportation systems, and other developmental projects. 

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However, a surprise tax provision on crypto transactions became the bone of contention stalling the Senate deliberations. The bill intends to raise $28 billion of its planned infrastructure spending by tightening tax compliance within the crypto industry. 

The Core Crypto Issues Within The Bill 

Several crypto experts and prominent individuals have come out strongly against the crypto provisions. Senator Cynthia Lummis observed that the bill would have a chilling effect on fin-tech innovations within the US. 

Among other things, the crypto community is particularly unhappy with the keyword “broker” being tucked into the bill. A broker is defined as anyone “responsible for and regularly providing any service effectuating transfers of digital assets”. 

All such entities/individuals handling digital assets will be subject to stringent tax reporting requirements under the Internal Revenue System (IRS). This would mean that even miners should collect and report information on users. Something that is by design impossible in a decentralized financial system which could eventually force innovators to move out of the US. 

Besides, Digital Rights organizations like Electronic Frontier Foundation believe that the expansion of financial surveillance amounts to invasion of privacy.

Formidable Push Back

Twitter CEO Jack Dorsey was quick to weigh in on the current crypto situation. Meanwhile, Senator Mark Warner’s proposed amendment, aimed at excluding Bitcoin miners from being considered ‘Brokers’ didn’t sit well with the crypto enthusiasts either. This meant Ethereum miners and developers relying on Proof of Stake Validations would alone bear the brunt of US tax laws.

Coinbase CEO Brian Armstrong, Elon Musk, and politicians like Ted Cruz strongly criticized the move on Twitter. 

India’s Opportunity to Shine 

India’s fin-tech industry is one of the world’s fastest-growing markets. Innovations in the fin-tech space based on blockchain technology are inevitable.

Realizing India’s potential, Finance Minister Nirmala Sitharaman, expressed the government’s willingness to provide a ‘window’ for fin-tech startups in the proposed crypto regulations to experiment with blockchain technology. 

China’s clampdown on cryptocurrency had forced out the billion dollar bitcoin mining industry. Now, the US’s confusing crypto provisions could potentially drive out innovators from North America. 

Perhaps, it is time for India to seize this $2 trillion opportunity. 

P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.

On 7th September, 2021, the crypto space reached a watershed moment in its history. El Salvador became the first country to adopt bitcoin as a legal tender. Though remarkable in what it means to a decentralized open-source future, the decision wasn’t welcomed well by traditional institutions like the International Monetary Fund (IMF). 

The global development bank, IMF, declared that the bitcoin adoption move would run into “many macroeconomic, financial and legal issues.” The veiled threat could amount to a possible withhold of El Salvador’s $1 billion loan negotiation with the IMF. 

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Red Flags raised by the IMF hold ground? 

In a recent informal blog post titled, Cryptoassets as National Currency? A Step Too Far, IMF cautioned nations against adopting bitcoin.  

The IMF conceded that cryptos are faster and cheaper payment systems even across borders. Bitcoin also enables massive financial inclusion. However, they’ve raised 4 major possible roadblocks in bitcoin becoming a viable legal tender. 

But are the high-level critiques against crypto truly ‘issues’ worth the dime? Let us find out. 

Volatility of Bitcoin 

Claim: The volatility of crypto assets could have disruptive economic effects. It could make long-term obligations, business pricing, etc. untenable. 

Reality: Volatility is a reasonable argument to make against bitcoin as the sole legal tender. However, it is noteworthy that El Salvador is also maintaining the current currency for day-to-day pricing, payments and debts while adding bitcoin as an option. 

The nascent price discovery phase for any asset is vulnerable to price swings. As more people embrace crypto assets, it will eventually increase price stability in comparison to other currencies. 

Money-laundering Risks

Claim: “Without robust anti-money laundering and combating the financing of terrorism measures, cryptoassets can be used to launder ill-gotten money, fund terrorism, and evade taxes.” 

Reality: There is no data to substantiate such claims. It is increasingly clear that cryptocurrency has limited utility for criminals and money launderers because of its easy traceability. 

According to CipherTrace, criminal activity of crypto networks reduced by 57% from 2019 to 2020, to a minuscule of $1.9 billion, even while the crypto market value almost doubled crossing the $1 trillion milestone as of March 2020.  

Besides, fiat currency is no holier than thou when it comes to money laundering. As per a UN estimate, $800 million to $2 billion worth of criminal proceeds is laundered and hidden each year, 33% more than all the cryptocurrencies in circulation today.  

Environmental Concerns 

Claim: Ecological implications of adopting crypto assets as a national currency could be dire. 

Reality: At present, according to a study by CCAF, bitcoin consumes annual energy equivalent to a small country like Malaysia or Sweden. However, considering the value offered by bitcoin – financial inclusion, hedge against inflation, escape from monetary repression – the energy is extremely well spent. 

Besides, as noted by Cathie Wood of Ark Invest, ‘Bitcoin is much more environmentally friendly than the traditional gold mining or financial services sector it seeks to replace’. Also, bitcoin mining is fast migrating to renewables

Monetary Policy 

Claim: Adopting a global cryptocurrency as a national currency would render the nation incapable of handling its own monetary policy. 

Reality: The IMF has rightly raised the issue of monetary policy sovereignty. But what IMF misses is, smaller nations like El Salvador and modern colonies like Congo and Niger (controlled by developed countries like France with the backing of the IMF) have little to no control over their money supply for decades. 

El Salvador and 7 other countries have used the American Dollar as their official currency. Moving to a neutral currency like bitcoin could indeed bring about stability to dollarized nations. 

What’s really the matter with the IMF?

An institute like the IMF, a vanguard of the traditional financial system, is bound to guard its turf. Cryptocurrency, bitcoin largely, is emerging as a key threat to existing norms. As experts have indicated, IMF’s objection to bitcoinization could be less about cryptocurrencies and more about the institution losing influence

P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.