In a recent report, the International Monetary Fund (IMF) made important definitions about the leading cryptocurrency Bitcoin (BTC), the second-ranked Ethereum (ETH) and the popular cryptocurrency XRP . Although the main subject of the report is central bank digital currencies, it is seen that the IMF also touches on crypto currencies.
🚩Content Guide
📌XRP, ETH and BTC Unofficial Currencies
📌IMF's Decision Is Positive For Cryptocurrencies
📌The Status of Crypto Coins May Change Again
XRP, ETH and BTC Unofficial Currencies
In terms of money law, the IMF, which evaluates crypto currencies and central bank digital currencies known as CBDC, defined the top three cryptocurrencies as "unofficial currencies". Well what does it mean? According to the IMF's definition, official funds can only be used for assets that are backed by a state and have a central bank.
July 9 BTC, ETH, XRP, BCH, BSV, ADA, LTC, BNB, CRO, EOS Price Analysis
In other words, currencies such as the US dollar, Euro, and Japanese yen are protected by both laws and the states behind them and have official currency status. It is known that there are no institutions behind currencies such as Bitcoin, Ethereum or XRP. Although Ripple is the company that launched XRP, there are currently no company-product ties.
IMF's Decision Is Positive For Cryptocurrencies
On the other hand, the central bank behind fiat currencies takes all the decisions about it. Although this definition made by the IMF seems bad at first, it can be said that it is definitely positive for BTC, ETH and XRP. It is exciting that the three cryptocurrencies, which did not even appear as currency in previous years, are now evolving into unofficial currencies.
The IMF emphasized that the status of central bank digital currencies has not yet been determined and that a little more time is required for this. With China's development of its own digital currency, CBDCs, which have made a name in the world, can achieve a clear status in the next 5 years.
The Status of Crypto Coins May Change Again
It may be possible for crypto currencies such as XRP , ETH and BTC to get rid of the "unofficial currency" status within 5 years .
In fact, the sharp rise of the cryptocurrency industry this year has attracted the attention of many institutions and investors, including the IMF. The Bitcoin price increased from $ 3,700 to $ 19,900, the XRP price from $ 0.11 to $ 0.77, and the ETH price from $ 80 to $ 660, making the cryptocurrency industry the top-earning industry of 2020.
