The International Monetary Fund is out with a new report on global financial stability revealing how crypto trading could affect the world’s economy.
“Repercussions of the Russian invasion of Ukraine and ensuing sanctions continue to reverberate globally and will test the resilience of the financial system through various channels, including acceleration of cryptoization of emerging markets, direct and indirect exposures of banks and non-banks, and possible cyber-related events.”
The IMF is also concerned about the quantity of central bank digital currencies (CBDC) being developed. As the system fragments and central banks become even more autonomous, the current banking infrastructure is left in a deluge of exponential technological advancements cascading into a game of keep up.
The IMF recommends that policymakers come up with a global set of regulatory standards to govern digital assets to ensure to protect against these risks for the global financial system, noting that decentralized financial platforms, as well as fintech firms, need further oversight.