IMF Chief Begs Investors Not to Shun All Crypto After the Collapse of LUNA, UST – Featured Bitcoin News

The International Monetary Fund’s (IMF), managing director, stated that it was not a good idea to completely exit crypto following the fall of cryptocurrency terra (LUNA), and stablecoin terrausd UST.

The IMF Chief has a message for crypto investors after the collapse of LUNA.

Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), discussed cryptocurrency at the World Economic Forum’s annual meeting in Davos Monday.

Bloomberg reported that She urged the public not to totally avoid crypto following recent collapses of algorithmic stabilitycoin terrausd and cryptocurrency terra. According to Bloomberg, the IMF’s managing director said:

I would beg you not to pull out of the importance of this world … It offers us all faster service, much lower costs, and more inclusion, but only if we separate apples from oranges and bananas.

According to the IMF Chief, it was the duty of all regulators in the world to take precautionary measures and properly educate investors regarding the risk of investing in crypto assets.

She pointed out that there are many different types of crypto assets with varying risk levels, emphasizing that there’s a big difference between stablecoins that are backed by cash and algorithmic stablecoins, like LUNA.

Georgieva opined:

You should accept the possibility of it blowing up, no matter how little backing you have.

IMF chief says that stablecoins will eventually fall apart if they are not backed by assets

Georgieva also spoke out on stablecoins in a Monday panel hosted by CNBC. “When we look at stablecoins, this is the area where the big mess happened. If a stablecoin is backed with assets, one to one, it is stable,” she said, elaborating:

When it is not backed with assets, but it is promised to deliver 20% return, it’s a pyramid … What happens to pyramids? … They eventually fall to pieces.

Let us know your thoughts on Kristalina Georgieva’s comments. Comment below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.