Krypto could soon be a risk of the financial stability of countries - regulation
Krypto could soon be a risk of the financial stability of countries - regulation
Economists of the International Monetary Fund (IMF) say that "crypto assets are no longer on the side of the financial system". In addition, they could soon be “risks to financial stability, especially in countries with widespread crypto acceptance”.
"Our analysis suggests that crypto assets are no longer on the side of the financial system"
The International Monetary Fund (IMF) published a blog post on Tuesday that warns of the risks of crypto systems for financial stability. The contribution was written by three economists in the IMF monetary and capital markets: Tobias Adrian, Tara Iyer and Mahvash S. Qureshi.
"crypto-assets such as Bitcoin have matured from an obscure asset class with a few users to an integral part of the digital asset revolution, which raises concerns about financial stability," describes the IMF contribution.
The authors explained:
Our analysis suggests that crypto assets are no longer on the edge of the financial system. In view of their relatively high volatility and reviews, their increasing movement could soon be a risk of financial stability, especially in countries with widespread crypto acceptance.
"It is therefore time to adopt a comprehensive, coordinated global regulatory framework in order to steer national regulation and supervision and to reduce the risks for financial stability from the crypto ecosystem," they wrote.
Three other people from the IMF and capital markets department of the IWF similar warned in October last year on the risks of crypto systems for financial stability. Dimitris Drakopoulos, Fabio Natalucci and Evan Papagenorgiou explained: "Cryptoization can reduce the ability of central banks to effectively implement monetary policy. It could also create risks to financial stability."
The US Federal Reserve is not concerned that Krypto could harm the country's financial system. In December last year, Fed boss Jerome Powell Cryptocurrencies as concerns about financial stability, however, warned that they are risky because "they are not secured by anything".
In the meantime, the deputy governor of the Bank of England warned for financial stability, Sir Jon Cunliffe, in November last year that cryptocurrencies are is closer Due to the fast growth of the sector, a threat to global financial stability.What do you think of the analysis of the IMF economists? Let us know in the comment area below.
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