IMF warned about the risks of cryptocurrencies in the financial system

The International Monetary Fund (IMF) issued a report aimed at addressing the rapid changes in the cryptocurrency market. In this report, titled “Assessment of the macrofinancial risks of cryptocurrencies”, the IMF highlights the significant risks that have not yet been fully addressed in this constantly evolving sector.

The IMF warns that the cryptocurrency industry is becoming increasingly relevant in the global financial system, essentially operating as a “parallel and unregulated financial system.”

According to the report, “The cryptocurrency sector poses numerous considerable systemic risks that the traditional financial sector cannot ignore.” These words were expressed by the IMF in its report published on September 29.

To address these challenges, the IMF proposes a new tool called “Crypto Risk Assessment Matrix” (C-RAM), designed to monitor, identify and evaluate emerging risks in the cryptocurrency sector at national and global levels.

An urgent challenge identified is the lack of centralized data and regulation, which requires international cooperation to adequately address.

The IMF also notes that due to the rapid innovation and decentralized nature of the cryptocurrency market, existing policy frameworks are insufficient to effectively manage risks.

The IMF suggests the need to expand current macroprudential policies to specifically address cryptocurrencies and decentralized finance, in order to address concerns about their risk profiles.

Furthermore, the International Monetary Fund raises the importance of developing this policy expansion in a coordinated manner with other macroeconomic measures to create a comprehensive risk management strategy.

K. Tovar

Source: Criptotendencia

Reference image source: James Baltz, Unsplash)

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