Bitcoin

IMF recommends CBDC and global crypto standards for financial stability

The International Monetary Fund (IMF) has put in place a number of actionable guidelines for emerging and developing countries to maintain financial stability amid the adoption of cryptocurrencies.

The IMF believes in the potential of crypto assets as a tool for faster and cheaper cross-border payments and points to a strong appreciation of the crypto market despite the downward trend since May 2021. The report cites high profitability, transaction costs and speed and reduced standards to combat the Money laundering (AML) as key factors for the introduction of cryptocurrencies.

In response to the challenges of financial stability due to increased trading in crypto assets, the IMF recommends:

“Policy makers should implement global standards for crypto assets and strengthen oversight of the crypto ecosystem by addressing data vulnerabilities. Emerging markets facing cryptocurrency risk should step up macroeconomic policies and weigh the benefits of issuing central bank digital currencies. “

The IMF report shows that crypto market valuations have expanded beyond Bitcoin (BTC), along with a sharp surge in stablecoin supply. Three-year IMF data shows risk-adjusted returns for volatile crypto assets like Bitcoin that are comparable to other mainstream benchmarks like the S&P 500, as shown in the following figure:

In addition to the CDBC issue, the IMF recommends adding “a regulation appropriate to the risks and in line with the regulation of global stablecoins”. In addition to implementing CBDCs, de-dollarization policies will help governments manage macro-financial risks.

Related: IMF Intends To “Strengthen” Cryptocurrency Supervision

As early as July 2021, Cointelegraph reported on the IMF’s plan to “step up” supervision of digital currencies. A previous IMF report highlighted the benefits of digital assets, suggesting that “Payments will become easier, faster, cheaper, more accessible and will quickly cross borders”. These improvements can drive efficiency and inclusion, with key benefits for all. “

The IMF had also previously scheduled a meeting with Salvadoran President Nayib Bukele to discuss the implications and the possibility of Bitcoin being adopted by the mainstream.

.

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Sui Foundation Enters into Strategic Partnership with Franklin Templeton Digital Assets

Grand Cayman, Cayman Islands, 22nd November 2024, Chainwire

15 minutes ago

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

2 hours ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

3 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

3 hours ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

3 hours ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

5 hours ago

This website uses cookies.