IMF Says Crypto Doesn’t Affect Financial Market Stability
The International Monetary Fund (IMF) said in an announcement on July 26th that the volatility of the cryptocurrency market has little impact on global financial stability.
IMF Denies Cryptocurrency Volatility to Macroeconomics
In a report published on Jyly 26th, the IMF said crypto assets have “experienced a dramatic selloff” that has led to losses in crypto investment vehicles and caused the failure of algorithmic stablecoins and crypto hedge funds, “but spillovers to the broader financial system have been limited so far.”
The IMF added that higher-than-expected inflation worldwide, a worse-than-anticipated slowdown in China, and further negative spillovers from the war in Ukraine have hit a world economy already weakened by the pandemic.
The head of the U.S. Federal Reserve, Jerome Powell, declared last month that the recent volatility in cryptocurrency was having “not really major macroeconomic repercussions so far“
At a hearing in May, U.S. Treasury Secretary Janet Yellen brought up Terra’s UST debacle and reaffirmed her support for tighter regulation of cryptocurrency, including stablecoins.
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