- IMF or International Monetary Fund has launched its quarterly Global Financial Report, and there is copious mention of cryptocurrency and its sophisticated role.
- In the report, the IMF talked about the widespread utilization of cryptocurrency in surfacing markets to bypass “capital limitations and sanctions.”
- As per the agency, there are numerous challenges facing the international economy with the Russian invasion of Ukraine.
Crypto Barriers Persisting On The Route
As per International Monetary Fund, there are various challenges facing the worldwide economy if Ukraine war, further tightening monetary conditions. It asserts that threats of “cryptoization” and more pronounced than ever in such circumstances.
It indicated an elevation in trading volumes of cryptocurrency in surfacing markets currencies, citing sales volume of stablecoins in Turkey and Russia as specific examples.
The report stated that a more structural shift toward cryptocurrency as a mode of payments or store of value may pose subsequent barriers to policymakers.
On sanction aversion, the report pointed out concerns that governments all over the globe are rising, that non-compliant cryptocurrency exchanges with bad due diligence practices, coupled with the utilization of techs that obfuscate transactions, can assist sanctioned nations to avert the imposed sanctions.
Monetizing Power Sources
Perhaps a more noteworthy fact is that this report also talks about crypto mining. It says, Mining for power-intensive blockchains such as Bitcoin (BTC) can enable nations to monetize power resources, some of which can’t be exported because of sanctions.
The agency said that the solution to all these threats remains a “coordinated regulatory approach” — mirroring its former calls for a uniform regulatory structure.
Uniform Regulatory Framework
Back in January, IMF issued a blog post. There, IMF talked about the risks posed by cryptocurrency, specifically if they constantly remain interconnected.
International Monetary Fund proposed that there must be an international and uniform regulatory framework for the crypto sector. Bank of England’s vantage point on how to monitor the ever-evolving cryptocurrency market is also quite similar.
Nations around the world are mobilizing to regulate the cryptocurrency sector. In some nations such as Australia and UK, the regulatory scenario has already started to make a shift.
However, investors in the majority of nations such as China, and India are still looking at extreme uncertainty regarding the sector.
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Source: https://www.thecoinrepublic.com/2022/04/23/imf-unveils-monetary-stability-report-points-out-crypto-threats-calls-for-laws/