Economists at the International Monetary Fund (IMF) say that “crypto assets are no longer on the fringe of the financial system.” In addition, they “could soon pose risks to financial stability especially in countries with widespread crypto adoption.”
‘Our Analysis Suggests Crypto Assets Are No Longer on the Fringe of the Financial System’
The International Monetary Fund (IMF) published a blog post on Tuesday warning about the risks crypto assets pose to financial stability. The post is authored by three economists from the IMF’s Monetary and Capital Markets Department: Tobias Adrian, Tara Iyer, and Mahvash S. Qureshi.
“Crypto assets such as bitcoin have matured from an obscure asset class with few users to an integral part of the digital asset revolution, raising financial stability concerns,” the IMF post describes.
The authors detailed:
Our analysis suggests that crypto assets are no longer on the fringe of the financial system. Given their relatively high volatility and valuations, their increased comovement could soon pose risks to financial stability especially in countries with widespread crypto adoption.
“It is thus time to adopt a comprehensive, coordinated global regulatory framework to guide national regulation and supervision and mitigate the financial stability risks stemming from the crypto ecosystem,” they wrote.