The International Monetary Fund theorizes about IMF cryptocurrencies.

The International Monetary Fund theorizes about IMF cryptocurrencies.

Publishing a paper addressing the potential of Bitcoin as a payment method beyond the country's economy.

The study analyzed Bitcoin's cross-border payment flow and analyzed in detail the differentiation from traditional capital flows and the on-chain/off-chain system.

1.) Bitcoin activity increases when investors tend to avoid risky assets, contributing to the proof of the results of other studies that Bitcoin could be used to provisionally prevent global uncertainty.

"The increase in the VIX volatility index is linked to increased inflows and outflows of Chainalysis, which results in increased inflows through the Bitcoin market for investors as alternative assets instead of risky assets."

Giving the view that individuals are also classifying Bitcoin as a "risk aversion" asset.

2.) Using bitcoin to avoid instability in local economies and currencies and circumvent capital controls.

"The increase in premium is linked to an increase in local Bitcoin outflows, and shows that Bitcoin can be used to circumvent capital controls."

So people are using Bitcoin as a censorship-resistant currency that protects against currency instability and government censorship/seizure

3.) Bitcoin flows have greater pies in emerging and developing countries, such as Argentina and Venezuela, compared to advanced economies with advanced financial markets.

Biggest Bitcoin Inflowers: Seychelles, Venezuela, Moldova, Venezuela, Nigeria, Central African Republic.

The reason for high inflows from countries such as Seychelles and Moldova is that existing low taxes and deregulation have led to the establishment of cryptocurrency exchanges.

These countries have significantly higher currency depreciation and economic instability, so people often invest in Bitcoin as a safe haven