IMF Directors Issue Crypto Warning, Urge Coordinated Policy Response to Protect Global Monetary System
The Executive Board of the International Monetary Fund (IMF) considers the growing use of crypto-assets as a threat to the global monetary system.
According to the IMF, the directors agreed that digital coins could have crucial implications for the UN financial agency’s mandate and policies during a discussion of a board paper providing guidance on the appropriate policy response to crypto-assets.
“In particular, the widespread use of crypto-assets could undermine the effectiveness of monetary policy, bypass capital flow management measures and exacerbate fiscal risk. Widespread adoption could also have significant implications for the international monetary system in the longer term.”
The IMF says member countries should adopt effective strategies amid the growing popularity of cryptocurrencies.
“Participants therefore emphasized that robust macroeconomic policies, including credible institutions and monetary policy frameworks are the first priority, and that the fund’s advice in these areas will remain crucial.”
As El Salvador and the Central African Republic (CAR) adopt Bitcoin (BTC) as an official currency, the directors are discouraging countries from making crypto-assets legal tender.
“Directors generally agreed that cryptoassets should not be given official currency or legal tender status to ensure monetary sovereignty and stability.”
US banking regulators also issued a statement on the risks of crypto to financial institutions.
“Recent events in the crypto-asset sector have highlighted the potential increased liquidity risk presented by certain sources of funding from crypto-asset-related entities.”
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered straight to your inbox
Check price action
Follow us on TwitterFacebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
