The International Monetary Fund (IMF) has released its report called “Global Financial Stability Report”, highlighting how digital currency assets brings in financial stability challenges.In its report, IMF notes that rapid growing crypto ecosystem presents new opportunities to the world. However, this digital currency assets also pose several financial stability challenges.
IMF Report on Crypto Ecosystem
According to report, Technological innovation is starting a new era of making payments and other financial services faster, cheaper and more accessible. Such transaction also allows to flow across borders swiftly.According to IMF, rapid growth and increasing adoption of crypto assets pose financial stability challenges.
Such decentralized currencies could also lead to instability as they are extremely volatile. They are much more volatile than the equities or commodities or exchange rates.Its transaction costs are fairly expensive as compared to digital money.
As per report, such transaction destabilizes the capital flows. It also poses several operational and financial integrity risks from the providers of crypto asset.
