IMF: Crypto Could Soon Pose Risks to Countries’ Financial Stability
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....
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The Bank of England says that crypto assets pose “limited” direct risks to the stability of the country’s financial system. “Cryptoasset and associated markets and services continue to grow and to develop rapidly. Such assets are becoming increasingly integrated into the financial system,” the U.K.’s central bank described.
Crypto Poses Limited Risks to UK’s Financial Stability
The Bank of England’s Financial Policy Committee (FPC) published the October edition of the “Financial Stability in Focus” report....
The group identified the crypto space at risk from hacking, “lack of transparency around issuance and distribution” of tokens, and operational risks including outages during periods of extreme volatility. The International Monetary Fund’s Financial Stability Board said the growing adoption of cryptocurrencies could potentially increase the risks to the global economy.In its Global Financial Stability Report released on Oct. 12, the International Monetary Fund, or IMF, said the adoption of crypto assets and stablecoins in emerging markets and developing economies could pose a challenge to....
ECB President Christine Lagarde downplays any risks bitcoin and other cryptocurrencies could pose to financial stability and monetary sovereignty. In contrast, she sees stablecoins, such as Facebook-backed libra, as posing “serious risks.” Christine Lagarde, Bitcoin, and Facebook’s Libra The president of the European Central Bank (ECB), Christine Lagarde, shared her view on the future of money in an article published Monday in L’ena hors les murs magazine. She specifically discussed “bitcoin or other crypto-assets that have been trying to gain a foothold in....
The U.S. Financial Stability Oversight Council (FSOC), a group of the country’s top financial regulators, has urged Congress to pass legislation for the regulation of crypto assets. Treasury Secretary Janet Yellen said: “Crypto-asset activities could pose risks to U.S. financial stability if their interconnections with the traditional financial system or their overall scale were to grow without adherence to or being paired with appropriate regulation, including enforcement of the existing regulatory structure.” U.S. Financial Stability Oversight Council’s....
Bank of England Deputy Governor Jon Cunliffe believes that cryptocurrencies are not big enough to pose financial stability risk. “They’re not of the size that they would cause financial stability risk, and they’re not connected deeply into the standing financial system,” said the deputy governor. Crypto Poses No Financial Stability Risk, Says Deputy Governor of Bank of England Jon Cunliffe, the deputy governor of the Bank of England, talked about cryptocurrency and whether it poses financial stability risk in an interview with CNBC Wednesday. He said: The....