The IMF's new rules are aimed at reducing the financial risks associated with global crypto adoption. To maintain financial stability despite worldwide crypto growth, the International Monetary Fund (IMF) published a set of rules for emerging markets and developing countries.
The IMF thinks that crypto assets have the potential to be used as a vehicle for quicker and cheaper cross-border payments, noting the significant rise in the value of crypto markets since May 2021, despite negative tendencies. High returns, transaction prices and speed, and decreased Anti-Money Laundering (AML) requirements are the main drivers for crypto adoption, according to the study.
To address the financial stability issues that have arisen as a consequence of increasing crypto asset trade, the IMF advises that:
“By addressing data gaps, policymakers could establish worldwide standards for crypto assets and improve their capacity to monitor the crypto industry. When confronted with cryptoization concerns, emerging countries should improve their macroeconomic policies and explore the advantages of issuing central bank digital currencies.”
According to the IMF study, the crypto industry has grown beyond Bitcoin (BTC), with a significant rise in stablecoin offers. The IMF also advises “proportionate regulation to the risk and in line with those of global stablecoins” in addition to central bank digital currency (CDBC) issue. De-dollarization measures, in addition to the CBDC, will aid governments in addressing macro-financial concerns.
Payments will become simpler, quicker, cheaper, and more accessible, and will traverse borders quickly, according to an earlier IMF study highlighting the advantages of digital assets. These enhancements may boost efficiency and inclusiveness, which would be beneficial to everyone.”
The IMF had also scheduled to meet with Salvadoran President Nayib Bukele to explore the consequences and prospects of Bitcoin acceptance in the mainstream.
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