[Bitcoin Now] Breathing Space at 45 Million Won... IMF Chief Says "Bitcoin Is Far from Currency"

IMF Officially Criticizes Bitcoin for Volatility and Anonymity, Saying It Cannot Serve as Currency
MicroStrategy Adds 13,506 Bitcoins in Q2

[Image source=EPA Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin remained in the 45 million KRW range. Amid this, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), expressed the opinion that Bitcoin lacks scalability to be accepted as legal tender. The IMF also officially criticized Bitcoin, stating that it cannot function as money due to its volatility and anonymity.

According to the domestic cryptocurrency exchange Upbit, as of 2:48 PM on the 30th, Bitcoin was recorded at 45.72 million KRW, down 0.39% compared to the previous day. It rose to the 46 million KRW range on the 28th for the first time in about a month, but there has been little fluctuation over the following two days.

Managing Director Georgieva expressed a negative view on Bitcoin. According to cryptocurrency specialized media U.Today on the 29th (local time), she said, “For Bitcoin to be recognized as legal tender, it must be accepted in a wide range of areas, but it is still insufficient to reach the status of legal tender.” She also pointed out Bitcoin’s volatility and energy issues. She stated, “El Salvador, which accepted Bitcoin as legal tender, will face difficulties in tax collection, budget execution, and pricing due to volatility,” and added, “There are many superior alternatives to Bitcoin, and it is difficult to justify Bitcoin mining, which consumes excessive energy.”

Earlier, on the 26th, the IMF officially stated that cryptocurrencies are inappropriate to be used as legal tender. The IMF posted an article titled ‘Cryptocurrency as National Currency? Too Far Ahead’ on its official blog, pointing out, “Cryptocurrencies are highly volatile and detached from the real economy, so adopting them as national currency could cause inflation and macroeconomic problems.” It also criticized that Bitcoin could be used for illegal money laundering, terrorist financing, and tax evasion, threatening national financial systems and fiscal soundness.

Meanwhile, MicroStrategy, the private company holding the largest amount of Bitcoin, purchased approximately 13,506 additional Bitcoins during the second quarter of this year. At current market prices, this amounts to about 617.5 billion KRW. On the 29th, MicroStrategy announced in its Q2 earnings report that as of June 30, it holds a total of 105,085 Bitcoins. This is an increase of 13,506 Bitcoins compared to the first quarter. Michael Saylor, CEO of MicroStrategy, said, “Through a $1 billion (approximately 1.1499 trillion KRW) capital increase last month, we were able to hold over 105,000 Bitcoins,” adding, “We will continue to invest additional capital in our digital asset strategy.”