The new IMF guideline seeks to minimize the financial risks associated with global cryptocurrency adoption.
Global bitcoin adoption prompts the International Monetary Fund (IMF) to develop a set of rules for emerging markets and developing nations to maintain their financial stability in the face of this trend.
The International Monetary Fund (IMF) thinks that cryptocurrency assets have the potential to be used as instruments for quicker and cheaper cross-border payments. According to the institution’s research, cryptocurrency adoption’s key reasons include large profits, low transaction fees, rapid transaction execution, and lax anti-money laundering (AML) regulations.
According to the International Monetary Fund, all factors mentioned above may be associated with specific hazards. The Fund advises the following measures to combat them:
“By eliminating security holes in data systems, lawmakers can effectively oversee the bitcoin ecosystem by implementing worldwide standards for cryptocurrency assets. Central banks should issue digital currencies and explore strengthening macroeconomic policies in emerging countries that are concerned about cryptocurrencies.“
According to the IMF analysis, the phenomena of the cryptocurrency market have already spread well beyond bitcoin (BTC). Stablecoins are also included as significant assets in the report. Additionally, the IMF proposes that risk-proportionate regulation be implemented in addition to the CDBC broadcast.