Crypto Should Be Seen As An Asset Not A Currency: IMF Chief Shares

Recently, the US approved Bitcoin exchange-traded funds (ETFs), exciting the crypto world. However, IMF Managing Director Kristalina Georgieva has some concerns.

Georgieva says cryptocurrencies should be seen as assets, not currencies. She compared crypto to money management funds rather than true currencies.

These comments came just before the US SEC approved new Bitcoin-backed ETFs. Companies like Ark and BlackRock can now offer these ETFs, letting people invest in Bitcoin without holding this asset directly. This is a big step for cryptocurrencies in the mainstream world. Still, Georgieva remains cautious about their impact on traditional currencies like the US dollar. However, she believes the possibility of cryptocurrency competing against the dominance of the US Dollar is still far in the future and is not a concern.

Despite Georgieva's concerns, experts like Gautam Chhugani from Bernstein and Alesia Haas from Coinbase are positive. They see these ETFs as a chance for more money to flow into cryptocurrencies and the fall in price as an opportunity for investors to buy cheap, giving the positive potential of Bitcoin.

Since the ETF approval, Bitcoin's price has dropped slightly to $42,700, a 6% decrease over the week. It's still early to tell how these ETFs will affect Bitcoin and the wider crypto market