IMF: Crypto Could Soon Pose Risks to Countries’ Financial Stability

Economists at the International Monetary Fund (IMF) say that “crypto assets are no longer within the scope of the financial system.” In addition, they “could soon pose a threat to financial stability, especially in countries where the majority of people adopt crypto-currencies.”

‘Our Analysis Indicates That Crypto Assets Are No Longer On the Finances’ Currency’

The International Monetary Fund (IMF) published a post on Tuesday blog warning of the dangers of the crypto economy that will bring economic stability. The work was written by three financial experts from the IMF’s Monetary and Capital Markets department: Tobias Adrian, Tara Iyer, and Mahvash S. Qureshi.

“Crypto assets like bitcoin have matured from a low-income group to a critical role in digital economic transformation, raising financial concerns,” explains the IMF.

The authors elaborated in detail:

Our analysis shows that the crypto economy is no longer on the edge of the financial system. Due to their high volatility and volatility, their increasing exposure can pose a risk to economic stability especially in countries where the majority of people accept crypto.

“So it is time for us to establish a global regulatory framework to guide the regulation and regulation of the country and reduce the financial crisis arising from the crypto ecosystem.”

Three other people from the IMF’s Monetary and Capital Markets Department alike he warned in October last year the risks of crypto assets lead to economic stability. Dimitris Drakopoulos, Fabio Natalucci, and Evan Papageorgiou in detail: “Cryptoization can reduce the ability of central banks to make better use of their monetary policy. It can also lead to financial crisis.”

The US Federal Reserve, however, is not concerned about crypto disrupting the country’s financial system. In December last year, Fed Chairman Jerome Powell removed cryptocurrencies as a concern for financial stability but warned that they are dangerous as “They are not aided by anything.”

Meanwhile, Bank of England’s deputy governor of economic stability, Sir Jon Cunliffe, warned in November last year that cryptocurrency was approaching posing a threat to global economic stability due to the rapid growth of the sector.

What do you think of the IMF financial analysts’ analysis? Tell us in the comments section below.

Kevin Helms

Austrian Economics student Kevin acquired Bitcoin in 2011 and has been a publisher ever since. Its interests are in Bitcoin security, open systems, network results and the gap between economics and cryptography.

Credits Pictures: Shutterstock, Pixabay, Wiki Commons

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