Cryptocurrency is nothing more than an investment tool, according to Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), in an interview with Yahoo Finance.
“It is necessary to distinguish between money and assets. When we talk about cryptocurrency, we are actually talking about the latter category. They can be backed and in this sense are safer and less risky, or they can be unbacked and, therefore, a riskier investment. But they are not quite money. They are more like a money market fund,” Georgieva explained.
Her comments followed the recent approval by the SEC of spot Bitcoin ETFs.
The IMF chief expressed doubt that Bitcoin could rival the popularity of the US dollar.
“That day [when it happens], if it exists, is so far in the future that I think it is not very useful to talk about it. Why is the dollar the dominant currency today? Because of the size of the American economy and, most importantly, the depth of the capital markets in the US,” Georgieva explained.
Back in November, the IMF chief stated that CBDCs could replace cash.
In June, the organization’s experts questioned the necessity of banning cryptocurrencies.