IMF Chair Advises Against Ditching Crypto After Terra Crash

IMF Chair advises against ditching crypto after Terra crash. IMF Chair Kristalina Georgieva during the World Economic Forum’s annual meeting on Tuesday said the collapse of Terra’s algorithmic stablecoin $UST should not make people abandon cryptocurrencies. Kristalina Georgieva believes the crypto market is important as it offers faster service, much lower costs, and more inclusion. And he also thinks every investment asset comes with some level of associated risks, and so do cryptocurrencies. Therefore, stablecoins backed by cash and other assets are different from stablecoins supported by algorithms. Stablecoins are cryptocurrencies supposed to maintain a 1:1 peg with reserve assets like the US dollar.