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IMF fears the impact of cryptocurrency on the global financial system

rapid growth of bitcoin and crypto will impact global financial system

IMF

According to the International Monetary Fund, the rapid development of the market and the rising prices of key assets can seriously affect the global financial system. In a recent report on the “World Economic Outlook: Challenges to Steady Growth”, published by the IMF, it says:

Cyber ​​security breaches in a critical financial infrastructure are an additional source of risk because they can undermine cross-border payment systems and disrupt the flow of goods and services. The continued rapid growth of digital assets could create new vulnerabilities in the international financial system.

Even without taking into account the significant decline in the volume and overall market conditions, the industry has seen positive changes related to institutionalization and regulation. Many leading financial institutions, such as the NYSE, Cboe and Goldman Sachs, have begun to strengthen the cryptocurrency market infrastructure, which has led to increased interest in the new class of assets from large investors and, as a result, the inflow of investments into the industry.

As the Digital Assets sector continues to grow at an exponential rate, the IMF stressed that this could create vulnerabilities in the financial system. Infrastructure and technologies that use cryptocurrency exchanges are relatively new and fundamentally different from the technologies implemented by the traditional financial sector. Thus, the IMF and government agencies believe that the rapid growth of the asset class represents a risk to global finance.

However, according to many experts, the mere recognition of cryptocurrencies as a separate class of assets on the part of the IMF is already capable of creating substantial support for the industry.

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