The International Monetary Fund (IMF) said in a report published on the second week of April that cryptocurrencies “do not appear to pose risks to financial stability”.
In its Global Financial Stability Report, the IMF maintained its recent stance in implementing international laws on cryptocurrency regulations. The report further states, “…they could [pose a risk] should their use become more widespread without the appropriate safeguards.”
The tone is bullish against the idea of “a bumpy road ahead” for world finance not discounting cryptocurrency’s potential to “transform financial activity.”
The IMF report further states:
“It is impossible to know the extent to which crypto assets may transform the financial infrastructure and whether most new crypto assets are likely to disappear as in past episodes of technological innovation (as many tech companies did during the boom of the late 1990s, for example). Before they can transform financial activity in a meaningful and lasting manner, crypto assets will first need to earn the confidence and support of consumers and financial authorities.”
The report adds that there needs to be a agreement among the global regulatory community on defining crypto assets (are they a security or a currency?) to gain this confidence.
The IMF follows the stance of other financial institutions, particularly the Financial Stability Board (FSB). Mark Carney, Governor of the Bank of Englad, told the G20 last March that crypto assets “do not pose risks” to the world’s economy.
Christine Lagarde, IMF Chief, on the other hand has adopted a similar stance on crypto, acknowledging its benefits and at the same time warning people about its illegal uses, which she says warrants attention. “A judicious look at crypto-assets should lead us to neither crypto-condemnation nor crypto-euphoria,” Lagarde said in an official blog post.