Senior IMF official warns cryptocurrencies could 'destabilise' emerging markets

Crypto a 'big challenge' for policymakers

clock • 1 min read
Cryptocurrencies pose 'immediate and acute risks' for emerging markets
Image:

Cryptocurrencies pose 'immediate and acute risks' for emerging markets

A senior official at the International Monetary Fund has warned against cryptocurrencies, arguing their use over traditional currencies give rise to “immediate and acute risks”, particularly for emerging markets.

Speaking to the Financial Times, IMF financial counsellor and head of the NGO's monetary and capital markets department Tobias Adrian raised his concerns over how volatility in cryptocurrencies are causing "destabilising" capital flows in emerging markets. Adrian said cryptocurrencies pose a "big challenge" for policymakers in some countries, highlighting how cryptocurrencies have lost around $1trn since their peak. Cryptocurrency crime hit record $14bn in 2021 He said: "Capital flow management measures will need to be fine-tuned in the face of cryptoisation. Applying established r...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot