Hyperinflation is a fact. To not be able to have the investment of funds of a country produce a handsome return over the years and account for either equal or more in terms of value than the time these were subjected do to the investment scheme is what hyperinflation means. Charles Hoskinson, the founder of Cardano, has come forward to submit his remarks against the IMF warning regarding the crypto industry. He has said that cryptocurrencies might prove to be worthy tools for emerging countries and market spaces that are trying to fight hyperinflation.
IMF, on the other hand, has said that it is a cryptocurrency that will weaken the financial infrastructure of emerging countries. The financial stability of a country is subjected to the overall investment it has done in various sectors and how diversified is their portfolio. IMF says that if these emerging countries, which are not quite there in terms of prosperity and having peace of mind in terms of financial stability, legalize cryptocurrencies, then these would be doing more harm than good.
Emerging Countries Should Replace Fiat With Crypto
This warning is eccentrically pointed towards El Salvador and its adoption of the flagship cryptocurrency Bitcoin as a legal tender. Seeing all the prosperity that the country is making and how important a step it was that other Latin American countries are also considering choosing this option where they legalize a dedicated cryptocurrency to help their economy come out of deep ruins. IMF thinks that it might be foolish or even stupid on the part of these countries to have adopted cryptocurrency as a legal tender because it weakens the correspondence of their own fiat currency, which is already suffering enough.
Charles Hoskinson counteracts this statement by saying that adopting crypto might be the only thing these emerging countries can do in order to make their financial infrastructure more stable and valid for the future. They have already tried their fiat currency for too long and didn’t come across any success in repairing their financial stance on the global map; maybe these are the cryptocurrencies that will help them to do so.