International Monetary Fund (IMF), G20 He had previously warned countries that the proliferation of cryptocurrencies could lead to banks losing deposits and reducing lending.
IMF Warns G-20 That Widespread Use of Cryptocurrency Will Impact Banks
The IMF’s report on “Macrofinancial Implications of Crypto Assets” presented to the G-20 during a meeting in India in February, crypto-friendly banks Signature Bank (SBNY), Silicon Valley Bank (SVB), and Silvergate Bank (SI) It was made public today, days after its collapse.
The following statements were included in the report:
“The proliferation of crypto-assets brings with it important risks in terms of financial sustainability, as well as the effectiveness of monetary policy, exchange rate management and capital flow management measures.
In addition, changes to central bank reserves and the global financial safety net may be necessary, leading to potential instability. Finally, banks may lose deposits and have to reduce lending.”
The report was prepared “following discussions with the Ministry of Finance of India and international focus group participants”.
It led the G-20 to decide to outline global crypto rules through an as-yet unframed synthesis document jointly prepared by the IMF and the Financial Stability Board (FSB).
The report also noted that “there are many risks associated with cryptoassets, although the importance and relevance of certain risks may differ according to country conditions.”
One of the key themes of the report is the need to fill data gaps to facilitate policy making.
The report also states that “despite their significant risk, crypto assets are developing technologies that the public sector can leverage in line with their policy objectives.”
*Not investment advice.
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