The International Monetary Fund (IMF) considers crypto to have the potential to put pressure on the banking industry and warns against prank tokens.
In a newly released report, the IMF says technological innovation is changing financial services. Again, the report states that the banking industry could lose market share if the crypto ecosystem becomes a mainstream alternative to bank deposits or existing loan options:
“To maintain similar levels of credit growth, local banks may have to turn to less stable and more expensive sources of funding, such as stablecoins held on crypto exchanges or private wallets.
Along with the direct loss of net interest income, the loss of customer relationships and transaction data will compromise credit risk assessment for customers and their ability to deliver targeted products to customers.”
The IMF also shiba inu (SHIB) and dogecoin (DOGEHe warns that the crypto ecosystem is fraught with “consumer fraud and market integrity risks”.
“The vast majority of crypto assets are highly volatile, speculative assets. A notable recent example is the growing interest of investors in “meme tokens”… Some of these tokens were created for speculation and their prices were heavily influenced by social media trends.
Accordingly, investors are likely to suffer if tokens, something less common in regulated securities markets, cease to exist. For example, more than 16,000 tokens have been listed on various exchanges over the years, but today [yalnızca] about 9,000 of them survived.”
The IMF is not the only institution to issue warnings about crypto’s potential impact on legacy finance. Last week, researchers at the Federal Reserve also warned the public that digital assets could pose a threat to the supremacy of the US dollar.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.