The IMF Points to Risks Posed by Cryptocurrencies

Reading Time: < 1 minute

The management of the International Monetary Fund regularly points out the risks posed by the cryptocurrency industry. This week, the IMF has released a study that says digital currencies undermine the stability of the state’s banking sector.

The risks will increase several times at once if developed and developing countries take the path of recognizing such instruments as legal means of payment.

The IMF urges states not to act like El Salvador, which recognized Bitcoin and not create dangerous situations for their economies. Risks are so far held back by regulators, but the increase in the number of crypto holders creates conditions under which it is no longer possible to ignore the new asset.

Stablecoins and the DeFI market are integral parts of the modern blockchain economy, and the authorities must keep an eye on these sectors.

Regulators need to pay special attention to large crypto exchanges, such as Binance, which account for the largest volume of transactions with digital assets, the authors of the report note.