The International Monetary Fund (IMF) has drawn the attention of G20 nations to the risks posed by the increasing adoption of digital currencies by citizens.
The report, titled “Macrofinancial Implications of Crypto Assets,” was revealed to the public during a G20 meeting in India, days after Silvergate Bank and Silicon Valley Bank collapsed. According to the report, digital currencies present a myriad of risks to the economies of G20 nations pertaining to both external and internal stability.
Top of the list for the IMF is the concern that growing digital currency usage could challenge the effectiveness of the monetary policy. As more citizens pivot from fiat to digital currencies denominated in foreign currencies, the IMF remarks that “cryptoization” of the local economy will be inevitable.
