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IMF: & # 39; Financial Inclusion & # 39; will increase global economy (as long as it is not bitcoin)

The International Monetary Fund warns that global growth will slow down at the lowest price since the financial crisis. But while encouraging economic inclusion, don't expect the IMF to embrace Bitcoin anytime soon.

Lowest Economic Growth Since Financial Crisis

Having made a downward adjustment to the lowest since the financial crisis, the International Monetary Fund (IMF) recently issued a cruel warning:

Global Growth Smoothed to 3.6 Percent 201[ads1]8 and is expected to decline further to 3.3 per cent in 2019.

One of the cures the IMF proposes is to increase economic inclusion.

The IMF owes the significant weakening of global expansion, the lowest in a decade, to several factors, mainly the ongoing trade war in China and the United States, Argentine and Turkish macroeconomic difficulties, and the misery of the German automotive industry.

To aggravate the problem, US President Donald Trump is now threatening to impose tariffs on cars imported from the EU, which could cause German car manufacturers to lose billions of dollars.

Another culprit that the IMF implies furnaces for the weakening economy is "financial tightening alongside the normalization of monetary policy in the larger advanced economies."

IMF: Economies need to be more inclusive

According to the IMF, to reactivate global economic growth, among other things, it is crucial that the financial and governmental authorities make the economies more inclusive.

 IMF's Christine Lagarde sees Cryptocurrencies Potential for Dollarization 2.0 & # 39;

The IMF has been a leading prerequisite for economic inclusion at least on the surface, highlighting the benefits of digital currencies. In November 2018, a discussion note states that a

Central Bank Digital Currency could enhance the benefits and reduce some of the cost and risk of the payment system, and could help encourage economic inclusion.

Furthermore, at the 2018 Singapore Fintech Festival, IMF CEO Christine Lagarde addressed the issue of economic inclusion and how digitization transformed economic activity.

In her speech, she noted how innovative payment providers using e-money reacted to people's demands and requirements for finances. In this regard, she said,

Let me start with economic inclusion, where digital currency gives good promise, through its ability to reach people and businesses in remote and marginalized regions. We know that banks are not exactly rushing to serve poor and rural populations.

And Lagarde added:

Even crypto curves like Bitcoin, Ethereum and Ripple are fighting for a place in the cashless world and are constantly reliving in the hope of offering more stable value and faster and cheaper settlements.

Virtual currency offers good promise, but …

Conversely, in the same speech, the IMF chief was concerned that "Continued rapid growth of crypto permissions could create new vulnerabilities in the international financial system."

At the same time, The IMF leader retrofits identity checkpoints (ie, chokepoints) into cryptographic baskets to maintain "financial stability." In other words, cryptographic curves like Bitcoin are good as long as governments and central banks keep control.

She claimed that KYC / AML regulations were introduced to ensure that the user's identities are adequately registered. However, this will undoubtedly add friction, undermining the whole idea of ​​economic inclusion.

Lagarde warned central banks not to block technological advances and said:

This brings me to my third area – potential disadvantages of digital currency. The obvious are the risk of financial integrity and financial stability. But I would also like to highlight the risk of suffocating innovation – the last thing you want.

The IMF is opposed to "suffocating innovation" sounds promising. However, it is doubtful that the IMF chief will support Bitcoin as an open alternative to the global banking system.

How do you think a global growth decline affects Bitcoin's price? Please let us know in the comments below!

Images with permission for Twitter / @ IMFNews, International Monetary Fund, Shutterstock

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