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Crypto-assets pose ‘new challenges to financial stability’, says IMF

International Monetary Fund warns crypto-assets like bitcoin pose ‘new challenges to financial stability’


Crypto-assets like bitcoin pose ‘new challenges to financial stability’, the International Monetary Fund (IMF) has warned. 

While digital currencies could present opportunities for businesses and consumers, the IMF said, governments and central banks needed to be wary of the ballooning risks.

Warning: Digital currencies could present opportunities for businesses and consumers, the IMF said, but governments and central banks needed to be wary of the ballooning risks

The Washington DC-based organisation has called on officials around the world to join and create a set of global standards to help prevent crypto-assets being used for criminal purposes or presenting a danger to the banking sector. 

In its latest blog, the IMF said: ‘The total market value of all the crypto-assets surpassed $2 trillion [£1.5 trillion] as of September 2021 – a 10-fold increase since early 2020. 

‘An entire ecosystem is also flourishing, replete with exchanges, wallets, miners and stablecoin issuers. Many of these entities lack strong operational governance and risk practices.’ 

Meanwhile, Sir Howard Davies, chairman of Natwest, said crypto should come with a warning saying ‘Abandon Hope All Ye Who Enter Here’ – the inscription over Hell’s gates, according to Dante. 

Read more at DailyMail.co.uk