The International Monetary Fund published a report on the current state, forecasts, and risks of the global financial system. One of the risks is new cryptocurrency assets.
Cryptocurrencies can damage the financial system
The IMF mentioned cryptocurrencies in its new report on the global financial system called the World Economic Outlook. The IMF predicts that the steady expansion under way since mid-2016 will continue, with global growth for 2018–19 projected to remain at its 2017 level. But some economies have already seen its peak, which means that in the near future a slowdown will substitute growth in those economies.
The global financial system remains vulnerable to many risks, including attacks on digital infrastructure and new digital assets.
“Cybersecurity breaches and cyberattacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services. The continued rapid growth of crypto assets could create new vulnerabilities in the international financial system,” the IMF report reads.
Earlier, the IMF suggested that cryptocurrencies could become so popular that they would replace fiat money in certain jurisdictions.
“So we cannot rule out the possibility that some crypto assets will eventually be more widely adopted and fulfill more of the functions of money in some regions or private e-commerce networks,” the latest study by the International Monetary Fund says. Growing skepticism regarding financial and banking services provided by traditional organizations will contribute to this.
IMF stands for a balanced approach to cryptocurrencies
The head of the IMF, Christine Lagarde, advocates an impartial attitude towards cryptocurrency.
“A judicious look at crypto-assets should lead us to neither crypto-condemnation nor crypto-euphoria,” said Christine Lagarde, adding that attention should be paid to the potential benefits of crypto-assets, such as bitcoin.
Published at Wed, 10 Oct 2018 05:44:34 -0400