The failure of the conventional financial system is often seen as the ideal springboard for widespread cryptocurrency adoption. The idea is simple. If bitcoin [BTC] and other cryptocurrencies are truly the future of money, then money, as we know it now, is faced with the threat of an imminent doom which will usher in the era of cryptos. In bitcoin BTC news today, the International Monetary Fund (IMF) has reportedly declared war on fiat currency through a new policy that could reduce the value of fiat savings making it illogical to save money in fiat currencies. Put side by side with the suggestion by IMF boss that cryptocurrencies will determine future savings, one can only imagine a grand plan to dethrone central bank-controlled fiat and enthrone decentralized bitcoin (BTC). This could boost BTC price and affect bitcoin price prediction 2019 and beyond.
IMF Warns against Fiat Savings Due to Negative Interest Rates Proposals – BTC News today
The International Monetary Fund (IMF) has reportedly proposed negative interest rates on savings made in fiat currencies in other to control inflation. Traditional market rating firm which also provides crypto insights and ratings observed the move referring to it as a declaration of war on cash.
Weiss Ratings wrote:
“The #IMF is the latest financial institution to declare war on cash. If they succeed, your fiat savings will go up in a puff of zero interest rate policies. This is why #crypto. #thisIsWhyWeHODL”
The IMF is an international organization working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
By proposing negative interest rates, the IMF intends to reduce interest rates that central banks determine, and in turn, boost the economic development of countries. The downside, however, is that money saved in fiat currency will not appreciate rather it would lose value due to inflation.
Normally, government-controlled central banks print more money making inflation to increase. But with low-interest rates from the IMF, inflation could go higher. But IMF, a strong fan of cashless economies, proposes a special provision for digital money to prevent this inflation caused by printing fiat.
Fiat Cash versus Digital Money
Broken down, IMF’s proposal involves splitting money as we know it in two forms, the regular fiat currency, and digital currency. IMF proposes that its interest rates policy apply to the digital currency which can be exchanged with the fiat version at a maintained exchange rate. Though the IMF referred to central bank-issued digital currency (CBDC), it gives more support to digital forms of money and would make the idea of bitcoin and other cryptocurrencies more acceptable.
What the IMF Really Thinks of Bitcoin (BTC)
IMF boss Christine Lagarde has not hidden her encouraging opinions about bitcoin and cryptocurrency in general. As Smartereum reported, Lagarde describes cryptocurrencies as having a potential to significantly, “impact on how we save, invest and pay our bills.” In 2011 She affirmed that the digital money “could help the financial markets function more efficiently, as it is fast and inexpensive to use.”
While she warns against the dangers associated with unregulated cryptocurrencies, Lagarde has firmly advocated for a “balanced approach” towards cryptocurrency.
Bitcoin Price Today – BTC to USD
At the time of writing, the value of BTC to USD stands at $5,485 according to btc price chart from coinmarketcap.
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