Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), believes that cryptocurrencies are far from attaining the same status as the US Dollar.
Even in the wake of the US Securities and Exchange Commission’s recent approval of 11 spot Bitcoin exchange-traded funds (ETFs), Georgieva stressed that cryptocurrencies should be regarded primarily as an investment vehicle.
During an interview with Yahoo, the IMF leader urged for a clear distinction between the concept of money and that of assets. She commented, “When discussing cryptocurrencies, we are essentially referring to an asset class.”
“It doesn’t quite qualify as traditional money; it resembles more of a money management fund,” she added.
Georgieva also highlighted that digital assets with strong backing tend to offer enhanced security and reduced risk.
However, she clarified that while diversifying one’s portfolio is essential, it shouldn’t be misconstrued as Bitcoin (BTC) competing with the US Dollar.
“I’m not eager to exchange my Dollars for another currency hastily,” she remarked. “It doesn’t mean that diversification isn’t advisable.”
Interestingly, her statements were made shortly before reports from Yahoo revealed that the SEC had given the green light for the launch of new spot Bitcoin-backed ETFs.
Georgieva underscored that the dominance of the US Dollar in the global financial landscape is a result of the vast size of the US economy and the depth of its capital markets.
Analyst Suggests to ‘Buy the Dip’
In the wake of the eagerly awaited approval of Bitcoin spot ETFs, several experts within the crypto industry are expressing optimism about investment prospects.
Gautam Chhugani, a senior analyst at Bernstein who previously predicted that BTC’s price would reach $150,000 by 2025, is advising investors to seize the opportunities presented by Bitcoin’s dips.
“Our straightforward advice to all investors is to buy during these downturns and focus on the upcoming Bitcoin adoption cycle. These minor selloffs represent opportunities in light of the significant potential upside that lies ahead.”
Additionally, Alesia Haas, the Chief Financial Officer of Coinbase, views the approval of ETFs as a “landmark day for crypto.”
“This marks a significant milestone in a long journey, and it’s just one step along the way,” Haas commented. She also believes that these approvals will “attract trillions of Dollars from sources that previously couldn’t access crypto assets or Bitcoin.”
