IMF Advocates CBDC and Global Crypto Regulations for Financial Stability

The new policies advocated by the IMF seek to minimize financial risks associated with the global adoption of cryptocurrencies.

IMF, the International Monetary Fund, has released a set of policies to facilitate financial stability amid the global adoption of cryptocurrency. 

The IMF showed its support for the emerging cryptocurrency industry, stating in its “The Crypto Ecosystem and Financial Stability Challenges” report how crypto assets are a tool for faster and cheaper cross-border payments. The report attributes high returns, transaction costs and speed, and standardised Anti-Money Laundering (AML) standards as the primary drivers for crypto adoption.

To combat the challenges of crypto adoption,  IMF recommends that: 

“Policymakers should implement global standards for crypto-assets and enhance their ability to monitor the crypto ecosystem by addressing data gaps. Emerging markets faced with cryptoization risks should strengthen macroeconomic policies and consider the benefits of issuing central bank digital currencies.”