IMF study reveals illicit use of Crypto is more prevalent in Corrupt Nations, Weaker Economies

The International Monetary Fund (IMF) has released a report claiming that the usage, adoption, and popularity of cryptocurrencies are higher in corrupt nations. According to the IMF’s findings published in a study titled “Crypto, Corruption, and Capital Controls: Cross-Country Correlations,” residents of nations where the traditional financial system is well developed is likely to be less inclined to feel the need to use cryptocurrency. The organisation, which has over 190 member countries, points out in its newest study that the surge in the popularity of crypto has both negative as well as positive effects.

“We find that crypto-asset usage is significantly and positively associated with a higher perception of corruption and more intensive capital controls,” the IMF report said.

The survey was conducted in 55 nations and involved thousands of takers — approximately 2,000 to 12,000 individuals in each country. The study revealed that cryptocurrency, among other things, allows citizens to undermine government authority by working around government-imposed trade prohibitions. It also allegedly promotes criminal activities by assisting criminals in evading detection. By removing middlemen, cryptocurrency has the potential to destabilise and destroy existing financial systems.