Categories: Economy

IMF experts warn of danger posed by cryptocurrencies

<p>
IMF experts have warned that the financial stability risks posed by cryptocurrencies “could soon become systemic in some countries.”</p>
<p>
Determining valuation is not the only challenge in the crypto ecosystem: identification, monitoring, and management of risks defy regulators and firms. These include, for example, operational and financial integrity risks from crypto asset exchanges and wallets, investor protection, and inadequate reserves and inaccurate disclosure for some stablecoins, the IMF experts have stated in an article posted on its blog. </p>
<p>
Moreover, in emerging markets and developing economies, the advent of crypto can accelerate what we have called “cryptoization”—when these assets replace domestic currency, and circumvent exchange restrictions and capital account management measures, it adds.</p>
<p>
Prime Minister Narendra Modi while speaking at The Sydney Dialogue last month had also said that all countries must work together on cryptocurrency and ensure that it doesn't end up in the wrong hands.</p>
<p>
The government plans to introduce a Bill in Parliament to ban private cryptocurrencies as there are fears that there is no transparency in these assets which carry the risk of money laundering and terror financing. Cryptocurrencies also fluctuate widely in value which can cause huge losses to holders in case of a sudden crash.</p>
<p>
The RBI has also advised the government to ban cryptocurrencies as they pose a risk to the financial stability of the country.</p>
<p>
The government has also decided to look into the issue of misleading advertisements that are being used by promoters of cryptocurrencies to lure buyers.</p>
<p>
At the same time the government is not averse to looking at the blockchain technology used in cryptocurrencies to examine if it can improve digital transactions in any way. </p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/economy-news/pm-holds-meeting-on-cryptocurrency-govt-to-crack-down-on-misleading-ads-128237.html">PM holds meeting on cryptocurrency: Govt to crack down on misleading ads</a> </strong></p>

IN Bureau

Recent Posts

“Political witch hunt”: Trump on continuation of trial against Israeli PM Netanyahu

US President Donald Trump on Saturday (US local time) called the continuation of the trial…

11 hours ago

Serbia: Protests erupt in Belgrade over calls for snap elections

Protestors in Serbia took to the streets of Belgrade and demanded an early election, as…

11 hours ago

“Deserves contempt”: MEA rejects Pakistan Army’s claim over attack in Waziristan

The Ministry of External Affairs (MEA) on Sunday strongly rejected the Pakistani Army's claims, where…

11 hours ago

Indian Army, Russian Land Forces bolster defence ties at IRIGC meet in St. Petersburg

Indian Army strengthens ties with Russian Land Forces at the 4th Indo-Russian Inter-Governmental Commission (IRIGC)…

11 hours ago

Indian contingent demonstrates tactical proficiency, joint synergy in France in SHAKTI-VIII exercise

The Indo-French Joint Military Exercise SHAKTI-VIII continues to strengthen operational interoperability and mutual cooperation between…

1 day ago

PM Modi attends centenary celebrations of Acharya Shri 108 Vidyanand Ji Maharaj

Prime Minister Narendra Modi attended the centenary celebrations of the revered Jain spiritual leader Acharya…

1 day ago