IMF Continues to Warn Against Cryptocurrencies and their Effect on Global Financial Stability

The crypto market is being an extremely volatile financial entity is an open secret by all means. Everyone knows about this, and still, this market has multiple investors continually making investments despite the fact that they know the risks very well. But the monetary associations around the globe don’t see very well the idea of decentralization and consistent use and adoption of cryptocurrencies. IMF is consistently warning people and nations about the catastrophic effects that the crypto market would have on destabilizing the global financial systems.

In a recent report, IMF has briefly intercepted various notions that are potentially tied with the crypto market and the dangers that it exhibit for destabilizing financial frameworks around the globe. IMF has also given away a very practical solution for this as the fund believes that global crypto regulation should be called to order, and every country and nation should abide by the rules for trading, interacting, or having any kind of exposure with the crypto market.

IMF Wishes that All Countries Gather Together to Develop a Crypto Framework

It might be the fear of the cryptocurrency taking over conventional financial systems talking, but IMF believes that sooner or later, the crypto fever is going to run high, and before things go out of control, a potential framework should be developed to contain the situation at the very beginning. IMF has not forgotten to make El Salvador and its recent adoption of Bitcoin as a legal tender a thrilling part of its extensive report against how cryptocurrencies are destabilizing the world’s financial systems in place. There are other critics of cryptocurrencies and decentralization, and China is at the very top of that list, but IMF has been the loudest of them all.

Recently IMF even hinted towards developing a pact where it invited countries to boycott the digital asset class altogether. No investment made into any financial market is ever 100% safe, and IMF being a monetary association, is well aware of the fact. But there is a concerning factor that IMF believes to be too alarming to have left unchecked, and that is the extreme volatility that the crypto market and every investment made into it possess. The risks are insanely high, and therefore IMF wishes to have a solid regulatory framework built around this whole thing.

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