IMF Report Says Crypto Does Not ‘Pose Risks’ To Global Finance

[Crypto_Hot_News]

Cryptocurrencies “do not appear to pose risks to financial stability,” the International Monetary Fund (IMF) said in a report published the second week of April.

In comments on crypto assets as part of its Global Financial Stability Report, the organization continued its recent stance in promoting international agreements on regulation. The report continues, “...they could [pose a risk] should their use become more widespread without the appropriate safeguards.”

The tone is bullish against the titular theme of “a bumpy road ahead” for world finance, and does not discount the potential for cryptocurrency to “transform financial activity.” The report states:

“It is impossible to know the extent to which crypto assets may transform the financial infrastructure and whether most new crypto assets are likely to disappear as in past episodes of technological innovation (as many tech companies did during the boom of the late 1990s, for example). Before they can transform financial activity in a meaningful and lasting manner, crypto assets will first need to earn the confidence and support of consumers and financial authorities.”

The report adds that, in order to gain this confidence, there will need to be a consensus among the global regulatory community about what crypto assets are; a security or a currency.

The IMF thus follows in the footsteps of other financial institutions this year, notably the Financial Stability Board (FSB). The head of the FSB, Bank of England governor Mark Carney, told the G20 in March that crypto assets “do not pose risks” to the world’s economy.

Meanwhile, IMF chief Christine Lagarde has similarly adopted a weighted stance on crypto, acknowledging its “benefits” while simultaneously warning about illicit uses which require attention. “A judicious look at crypto-assets should lead us to neither crypto-condemnation nor crypto-euphoria,” she wrote in an official blog post last month.

Source: https://cointelegraph.com/news/imf-report-says-crypto-does-not-pose-risks-to-global-finance

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[pinkflower]

Cryptocurrencies are really complementary with the banking system if they know how to make products and services acting around it. Ripple is a good example of how banks can use a cryptocurrency platform.

[Paul karet]

Cryptocurrencies “do not appear to pose risks to financial stability,” the International Monetary Fund (IMF) said in a report published the second week of April.

In comments on crypto assets as part of its Global Financial Stability Report, the organization continued its recent stance in promoting international agreements on regulation. The report continues, “...they could [pose a risk] should their use become more widespread without the appropriate safeguards.”

The tone is bullish against the titular theme of “a bumpy road ahead” for world finance, and does not discount the potential for cryptocurrency to “transform financial activity.” The report states:

“It is impossible to know the extent to which crypto assets may transform the financial infrastructure and whether most new crypto assets are likely to disappear as in past episodes of technological innovation (as many tech companies did during the boom of the late 1990s, for example). Before they can transform financial activity in a meaningful and lasting manner, crypto assets will first need to earn the confidence and support of consumers and financial authorities.”

The report adds that, in order to gain this confidence, there will need to be a consensus among the global regulatory community about what crypto assets are; a security or a currency.

The IMF thus follows in the footsteps of other financial institutions this year, notably the Financial Stability Board (FSB). The head of the FSB, Bank of England governor Mark Carney, told the G20 in March that crypto assets “do not pose risks” to the world’s economy.

Meanwhile, IMF chief Christine Lagarde has similarly adopted a weighted stance on crypto, acknowledging its “benefits” while simultaneously warning about illicit uses which require attention. “A judicious look at crypto-assets should lead us to neither crypto-condemnation nor crypto-euphoria,” she wrote in an official blog post last month.

Source: https://cointelegraph.com/news/imf-report-says-crypto-does-not-pose-risks-to-global-finance

This news is very meaningful to many people. things like this will help improve the stability of the krypto market. Thank you friend.

[amishmanish]

It's amazing how confident of themselves the elites always are. They see everything as a new way to have more control and power. Calling cryptocurrencies Financial technology is a similar manipulative attempt. The intention is to portray bitcoin/ crypto as just another evolutionary step to the zero-accountability banking practices that banking cartels have always been free to follow.

Bitcoin and crytpocurrencies are not evolutionary but revolutionary. This will also decide how successful the alt-coins will really be. Attaching the buzzword "blockchain" doesn't make a product crypto. There is decentralization and trustlessness as the most important elements. Like in bitcoin, people are not dependent on banks to exchange value between each other. There goes the control on "who gets the money and who doesn't".

When taken to a global scale, these small groups of peer-to-peer traders, merchants and users have the ability to support a parallel economy by itself. This is where the banks need to get their act together by being more responsible in terms of enabling equitable growth and distribution of wealth. These sly attempts at labelling crypto as "financial innovations" means that the banks have no intention of changing their age old practice of supporting the hegemonous aspirations of governments and powerful individuals.

People have bitcoin as a way to assert their freedom from this circle of control. It depends on us whether we choose to help it grow or become a victim of our own greed, again. So stop looking up to the banks, IMF etc. to give you your freedom. We don't serve them. They exist because of us. Bitcoin doesn't need their approval to be chosen as a mode of exchange or store of value.

[jseverson]

Well if nothing else, this lowers the risk of sweeping regulations that could set back adoption. I see this as a positive.

People have bitcoin as a way to assert their freedom from this circle of control. It depends on us whether we choose to help it grow or become a victim of our own greed, again. So stop looking up to the banks, IMF etc. to give you your freedom. We don't serve them. They exist because of us. Bitcoin doesn't need their approval to be chosen as a mode of exchange or store of value.

As much as I agree, this really isn't about their approval. Everyone is free to use Bitcoin as they wish, which was the idea, but the way governments around the world classify it is going to affect you one way or another. What they seem to be getting at is that the uncertainty regarding this particular topic hurts the confidence and support of consumers and financial authorities. I agree with that assessment. I'm going to treat Bitcoin as a currency no matter what, but I feel like this is a necessary step for the market to be considered mature. I understand peer-to-peer traders won't care for the most part, but I imagine businesses would want less flip-flopping regarding regulations.

[amishmanish]

--snip--
As much as I agree, this really isn't about their approval. Everyone is free to use Bitcoin as they wish, which was the idea, but the way governments around the world classify it is going to affect you one way or another. What they seem to be getting at is that the uncertainty regarding this particular topic hurts the confidence and support of consumers and financial authorities. I agree with that assessment. I'm going to treat Bitcoin as a currency no matter what, but I feel like this is a necessary step for the market to be considered mature. I understand peer-to-peer traders won't care for the most part, but I imagine businesses would want less flip-flopping regarding regulations.

I do agree that regulations for the sake of clarity and confidence to merchants is important. What I don't like is this tone about "cryptocurrencies being an important FinTech innovation". It seems that they intentionally want to downplay the importance and capability of bitcoin as a safe and fast method of trustless transaction.
Governments can easily clarify regarding regulations but they seem to intentionally delay any clarity on the situation. As more governments make their stance clear as to whether they want to brand bitcoin as illegal or not, hopefully it should create a domino effect of adoption or rejection.
It does feel like we are on the cusp of change. Or maybe it has always seemed like that for bitcoin..lol..Maybe some old member can shine some light on this.

[Bugsbey]

Cryptocurrencies are really complementary with the banking system if they know how to make products and services acting around it. Ripple is a good example of how banks can use a cryptocurrency platform.

That is true! So the banks must no be afraid of crypto currency instead they must study it as to how they can use it to make their system more productive. And not only the banks but for all financial institutions and businesses.

[davis196]

The combined cryptocurrency market cap is less than 0.5% of the world's GDP.How can cryptocurrencies be a risk for the global financial system?All the people,that have a brain can do the math,but the banksters will continue the propaganda about cryptos being gangerous for the world.They will cause a disaster.

[Idrisu]

This is actually a reality and we should accept this as a fact.  Many of us has seen bitcoin as scam and speculative assets but this not so.  Bitcoin is the money of the internet and the idea and thought behind it is a very solid one. I believe the world financial system are going to used bitcoin one day and will see how advance this technology is.

[dothebeats]

This, overall is a positive news concerning cryptos and the regulatory bodies around the world. Many governments think that crypto poses a huge risk on their countries' economies and citizen's interests since the cryptomarket is a hotbed for scams and illegal activities. In order to truly tap the potential of crypto in the financial sector, regulatory bodies should first explore what crypto can offer. The remarks of IMF is truly a positive one and can help cryptos gain a positive light among governments.