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 those countries’ macroeconomic and financial stability. The group said the risks were “contained for now,” but urged regulators to monitor cryptocurrencies and keep them in check.
The IMF added that as the crypto space expanded and evolved “new sources of risk” were emerging such as stablecoins and decentralized finance, or DeFi. Specifically, the group identified the space at risk from hacking, “lack of transparency around issuance and distribution” of tokens,