The International Monetary Fund (IMF) had recently published a video explaining what cryptocurrency is. Besides suggesting that cryptocurrency could “completely change the way we sell, buy, save, invest, and pay our bills,” IMF went on by saying that it “could be the next step in the evolution of money.”
What are cryptocurrencies? https://t.co/ggONlLkA2r pic.twitter.com/yYpj3Jf37E
— IMF (@IMFNews) August 23, 2020
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IMF Explains Crypto
The IMF tweeted the video giving vital details on what cryptocurrency is. Referring to cryptocurrency as “a special currency,” the two-minute video attempts to outline its benefits in payments, such as by removing middlemen, lowering costs, and increasing transaction speed.
READ: IMF expects global GDP to shrink by 4.9% in 2020
It also warned about sees as risks, such as anonymity and volatility. The video has garnered more than 523K views at the time of writing; it has been retweeted 6.9K times, liked 10.2K times, and received about a thousand comments. The video ends with:
“If we can counter the risks, then this new technology or some variation of it can completely change the way we sell, buy, save, invest, and pay our bills. And who knows, this could be the next step in the evolution of money.”
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Barry Silbert a globally known hedge fund manager and the founder Grayscale of Global leader in digital currency asset management, offering single asset & diversified exposure via private & public funds commented on IMF educative video on crypto. He said “So, um, the IMF is shilling cryptocurrencies now”
So, um, the IMF is shilling cryptocurrencies now https://t.co/d67Pt87xm9
— Barry Silbert (@barrysilbert) August 23, 2020
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Understanding Crypto Assets
Crypto assets are digital representations of value, made possible by advances in cryptography and distributed ledger technology (DLT). The blockchain technology allows using distributed ledgers for generating and keeping records without the need for a central party (for example, a central bank) to administer the system.
Crypto assets are denominated in their own units of account and can be transferred peer-to-peer without an intermediary.