{"id":1488863,"date":"2022-05-23T17:15:11","date_gmt":"2022-05-23T21:15:11","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1488863"},"modified":"2022-05-23T17:15:15","modified_gmt":"2022-05-23T21:15:15","slug":"head-of-imf-denounces-certain-types-of-crypto-as-pyramid-schemes-at-world-economic-forum-summit","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/head-of-imf-denounces-certain-types-of-crypto-as-pyramid-schemes-at-world-economic-forum-summit\/","title":{"rendered":"Head Of IMF Denounces Certain Types Of Crypto As \u2018Pyramid\u2019 Schemes At World Economic Forum Summit"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhead-of-imf-denounces-certain-types-of-crypto-as-pyramid-schemes-at-world-economic-forum-summit%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1488863&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>International Monetary Fund Managing Director Kristalina Georgieva said at the World Economic Forum on Monday that stablecoins not backed by assets are a \u201cpyramid\u201d scheme.<\/p>\n<p>Earlier this month, TerraUSD and sister stablecoin Luna \u2014 which are linked to the value of the dollar by algorithms relying upon traders to arbitrage the two coins\u2019 prices \u2014 plummeted in value, leading the cryptocurrency market at large to undergo <a href=\"https:\/\/www.wsj.com\/articles\/why-did-cryptocurrencies-terrausd-and-luna-unravel-stablecoin-price-crash-explained-11652462779\">billions in losses<\/a>.<\/p>\n<p>Georgieva pointed to stablecoins as \u201cthe area where the big mess happened.\u201d<\/p>\n<p>\u201cIf a stablecoin is backed with assets, one to one, it is stable. When it is not backed with assets, but it is promised to deliver 20% return, it\u2019s a pyramid,\u201d the Bulgarian economist <a href=\"https:\/\/www.cnbc.com\/2022\/05\/23\/imf-head-says-stablecoins-not-backed-by-assets-are-a-pyramid-hinting-at-ust.html\">said<\/a> at a World Economic Forum panel moderated by CNBC. \u201cWhat happens to pyramids? \u2026 They eventually fall to pieces.\u201d<\/p>\n<p>However, Georgieva is in favor of continuing the use of other cryptocurrencies \u2014 especially if they are <a href=\"https:\/\/finance.yahoo.com\/news\/imf-georgieva-urges-against-abandoning-175202539.html\">subject to regulation<\/a>.<\/p>\n<p>\u201cI would beg you not to pull out of the importance of this world,\u201d she continued. \u201cIt offers us all faster service, much lower costs, and more inclusion, but only if we separate apples from oranges and bananas,\u201d she said, arguing that regulators around the world must establish safeguards for investors.<\/p>\n<p>Indeed, Americans lawmakers such as Sen. Elizabeth Warren (D-MA) have repeatedly called upon regulators to <a href=\"https:\/\/www.dailywire.com\/news\/warren-asks-biden-administration-to-crack-down-on-cryptocurrencies\">crack down<\/a> on cryptocurrencies.<\/p>\n<p>\u201cI have become increasingly concerned about the dangers cryptocurrencies pose to investors, consumers, and the environment in the absence of sufficient regulation in the United States,\u201d Warren told Treasury Secretary and Financial Stability Oversight Council Chair Janet Yellen last year. \u201cHowever, as the demand for cryptocurrencies continues to grow and these assets become more embedded in our financial system, the Council must determine whether these trends raise concerns beyond investor and consumer protection and extend to broader systemic vulnerabilities that could threaten<\/p>\n","protected":false},"excerpt":{"rendered":"<p>International Monetary Fund Managing Director Kristalina Georgieva said at the World Economic Forum on Monday that stablecoins not backed by assets are a \u201cpyramid\u201d scheme. Earlier this month, TerraUSD and sister stablecoin Luna \u2014 which are linked to the value of the dollar by algorithms relying upon traders to arbitrage the two coins\u2019 prices \u2014 &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1488880,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1488863","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1488863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1488863"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1488863\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1488880"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1488863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1488863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1488863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}