IMF Proposes A Paper To Assess Crypto Risk
The International Monetary Fund has published a paper proposing a matrix for assessing the risks of the cryptocurrency sector. The matrix is intended to outline vulnerabilities and measures to prevent them.
“Assessing Macrofinancial Risks from Crypto Assets” offers countries a matrix that will identify markers of potential risks in the crypto industry. It includes three steps. The first one defines the potential impact of cryptocurrencies on the macroeconomy. The second stage looks at monitoring indicators. And at the last step are global macroeconomic risks.
The paper also cites the example of El Salvador, which made Bitcoin a legal payment method in 2021. The authors of the paper assess this precedent as macrocritical. They believe it undermines financial stability. Last year, the IMF urged El Salvador to stop using Bitcoin as a means of payment.
