IMF Vice President: Accelerate Regulatory Actions to Avoid Systemic Risks of Cryptocurrencies to Traditional Finance

2023-01-22 11:57:33
Collection

ChainCatcher news, International Monetary Fund (IMF) Vice President Bo Li calls for more action on regulation in the crypto industry to avoid the destabilizing effects of cryptocurrencies on banks and traditional financial institutions. Nobuyasu Sugimoto, Deputy Director of the IMF's Financial Regulation Division, and IMF Vice President Bo Li believe that, given the increasing ties between traditional finance and cryptocurrencies, the volatility of cryptocurrencies could pose systemic risks to the existing financial system.

The IMF blog post points out that developed economies are also vulnerable to the financial stability risks posed by cryptocurrencies, as institutional investors were attracted by higher returns in the previous low-interest-rate environment, increasing their holdings of stablecoins. (source link)

Related tags
ChainCatcher reminds readers to view blockchain rationally, enhance risk awareness, and be cautious of various virtual token issuances and speculations. All content on this site is solely market information or related party opinions, and does not constitute any form of investment advice. If you find sensitive information in the content, please click "Report", and we will handle it promptly.
banner
Related tags
ChainCatcher Building the Web3 world with innovators