IMF: Crypto poses a risk to financial stability

IMF Managing Director Kristalina Georgieva pointed out that crypto assets are risky assets during a conference on digital currencies held in Seoul, the capital of South Korea.

Recalling that the founder of the world's largest cryptocurrency exchange, Binance, pleaded guilty to money laundering charges following the conviction of the founder of the prominent crypto exchange FTX for fraud, Georgieva noted that the crypto industry has not had a stellar reputation over the last 15 years.

Emphasizing that the effects of crypto assets must be considered if they become widespread, Georgieva stated, "The challenge here is that high adoption of crypto assets could undermine macro-financial stability."

Georgieva said, "Our goal is to create a more efficient, interoperable, and accessible financial system by leveraging some of the technologies and providing infrastructure, while establishing rules to avoid the risks of crypto."

Pointing out that the purpose of the rules is not to return the current situation to a pre-crypto world or to stifle innovation, Georgieva noted that good rules can encourage and guide innovation.

News Source: 12punto