IMF Says That Cryptocurrencies Do Not Threaten Financial Stability
✍️ 28 July, 2022 - 17:37 👤 Editor: Jakub Motyka
- The crypto winter has severely affected various sectors of the digital economy, not necessarily cryptocurrencies.
- Although the digital market is still has not been fully extended to the public, it is possible that the traditional market is affected.
- What does the IMF think about it?
The International Monetary Fund (IMF) ensures that the fall of cryptocurrencies does not threaten global financial stability. In a recently published report, he commented on how the Russian invasion of Ukraine and the blockades caused by COVID-19 are the most important threats to the world economy. This statement is based on the fact that, at the moment, Bitcoin (BTC) is separated from the conventional banking system.
His new stance on crypto assets contradicts his earlier sentiments on the digital economy. In 2019, Christine Lagarde, the then head of the IMF, declared that cryptocurrencies had an impact on the financial system. Alongside this, at the end of last year, the IMF said that digital currencies >were a threat to global financial stability. These statements prompted the appearance of regulations worldwide, in order to have more control over these assets.
Are The IMF Statements On Cryptocurrencies Correct?
The crypto winter has affected numerous companies, forcing them to file for bankruptcy, the best examples of this being Three Arrows Capital and lender Celsius. At the same time, the constant threat of recession has caused many investors to sell their assets. This has led the price of BTC to reach USD 17,000, causing problems with the loans given to these and other companies in the digital world.
Despite the IMF's assertion, a report published early last year points out that cryptocurrency prices correlate with shares of traditional companies . Simply put, digital currencies have started to have a negative effect on global markets. However, they point out that their opinions do not necessarily represent the opinions of third parties.
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- fmi-crypto: https://commons.wikimedia.org/wiki/File:International_Monetary_Fund_building.JPG