Russia-Ukraine War Will Increase Crypto Adoption According To IMF

A managing director of the International Monetary Fund (IMF), cryptocurrency He stated that he thought the increased use of his units could be a result of the war between Russia and Ukraine.

In a new report by the Financial Times (FT), the first deputy director general at the IMF Gita GopinathHe stated that he thinks that the wide-ranging international sanctions imposed on Russia could shatter the current economic world order.

According to Gopinath, cryptoassets, central bank digital currencies (CBDC) and stablecoins could be adopted even more in response to this war. Increasing adoption naturally creates a need for regulation.

“All these developments will begin to attract even more attention after recent events that have brought us to the problem of international regulation. There is an important gap that needs to be filled.”

IMF

Gopinath also told the Financial Times that he thinks the US dollar dominance will decline as a result of the US sanctions imposed in response to the Russian invasion of Ukraine on February 24.

As part of a push for international regulation last December, the IMF also highlighted the systemic risks to financial stability that may arise in certain countries as cryptocurrencies worth nearly $2.5 trillion become more interconnected with the traditional financial system.

IMFDiscussed in January how the growing popularity of cryptocurrencies combined with price volatility could negatively impact traditional markets. More recently, the IMF’s managing director, Kristalina Georgieva, announced that the organization would prefer CBDCs over cryptocurrencies.

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