Investitorii nu ar trebui să renunțe la criptomonede din cauza prăbușirii Terra, spune directorul general al FMI

According to Kristalina Georgieva – the Managing Director of the International Monetary Fund (IMF) – the recent fiasco with LUNA and UST should not become a reason for people to turn their backs on the cryptocurrency industry entirely. Unlike her previous statements, she praised the “faster service, much lower costs, and more inclusion” that the asset class provides.

Not all Digital Assets are the Same

Terra’s native token – LUNA – and its algorithmic stablecoin – UST – were undoubtedly the hottest topics in the crypto space this month. The former prăbușit to almost zero, while the latter lost its peg to the US dollar and is currently trading at about $0.06.

The event, combined with the significant price collapse of many other digital assets, caused a state of panic among investors.

However, the Bulgarian economist and Managing Director of the IMF – Kristalina Georgieva – a susținut that people should not view Terra’s crash as a reason to abandon the entire crypto sector. In her view, there are numerous blockchain projects that provide certain benefits, and people should not compare them to the fiasco with LUNA and UST:

„Te-aș ruga să nu renunți la importanța acestei lumi. Ne oferă tuturor servicii mai rapide, costuri mult mai mici și mai multă incluziune, dar numai dacă separăm merele de portocale și banane.”

Georgieva added that stablecoins backed by cash or other assets are a less risky investment option than those that rely on algorithms to maintain their valuation (like UST):

„Cu cât este mai puțin sprijin, cu atât ar trebui să fii mai pregătit să-ți asumi riscul ca acest lucru să explodeze în fața ta.”

Earlier this year, she was not so kind to the cryptocurrency industry, revendicare digital assets are “unbacked” and “inherently volatile.” On the other hand, she praised CBDCs as safer and cheaper financial products that could support the financial system while also reducing transaction costs.

Speaking alongside IMF’s executive was also the governor of Banque de France – Francois Villeroy de Galhau. He believes society has lost some of its faith in cryptocurrencies and decentralized finance (DeFi) due to the market crash while putting more trust in central banks.

The IMF and Bitcoin

It is worth noting that the primary cryptocurrency has received a severe backlash over the past few months from the IMF. At the beginning of the year, the entity described BTC as a threat to the financial market integrity, monetary stability, and consumer protection. As such, it a cerut El Salvador to remove the legal tender on the asset.

True to his style, the President of the country – Nayib Bukele – a afirmat that “no international organization is going to make us do anything, anything at all.”

Last month, the Central African Republic (CAR) a devenit the second nation to adopt bitcoin as an official means of payment. Unsurprisingly, the IMF criticat the move, arguing it might cause financial instability and further problems for the state.

Featured Image Courtesy of Euroactiv