Bitwise CEO Matt Hougan shared his views on the International Monetary Fund’s paper on cross-border flows in Bitcoin, stating his key takeaways. The paper highlights major trends in the Bitcoin industry and how investors have perceived the cryptocurrency. Hougan in a post on X shared his key takeaways from the research.

Bitcoin a Safe Heaven In Restricted Economies

Hougan says that countries with restricted access to the global market are among the biggest consumers of Bitcoin. The estimated cross-border Bitcoin flows are significant in the GDP of many countries, particularly those that see relatively little capital transfers, the research observes. The entire study reiterates this conclusion. Additionally, it implies that Bitcoin is being used as a release valve by citizens of nations with capital controls or restricted access to the global economy.

US Stands As Bitcoin Outlier

Comparing the US’s limited adoption of Bitcoin to traditional financial flows, it stands out as an extreme outlier. As a result, Hougan believes that not everyone sees the world from this perspective. The study presents evidence in the form of an excellent GDP-based graph that contrasts cross-border BTC flows with flows into traditional investment products. The US has the highest reading of traditional funds’ dominance. Venezuela and Ukraine are two nations at the other end of the spectrum, highlighting that other nations with not-so-stable economies have less dependence on traditional assets.

IMF’s Watch on Bitcoin Shows Its Growth

According to Hougan, IMF’s interest in Bitcoin likely indicates how lawmakers are trying to understand the sector better. Because BTC “has grown rapidly over the past decade,” the IMF is doing this research because policymakers are becoming more and more interested in understanding how it will affect the world economy. The interest could subsequently result in better understanding, rules and regulations, and better monitoring of the crypto markets.

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The post Bitwise CEO Dissects IMF Bitcoin Flow Report; Here is What to Know appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am