The International Monetary Fund (IMF), a major financial agency of the United Nations (UN), warned the G20 countries about the widespread use of crypto assets.
The warning was disclosed through a report of the agency that was recently made public.
The "Macrofinancial Implications of Crypto Assets" report was initially given to G20 countries in February during a meeting in India.
- In the report, the IMF warned that widespread crypto use could pose a risk to the effectiveness of monetary policy, exchange rate management, capital flow management measures, financial stability, and fiscal sustainability.
- The IMF's report also said banks could lose deposits and have to reduce lending due to increased use.
- The agency underlined that the significance and relevance of the specific risks related to the widespread use of crypto assets depend on the countries' circumstances.
- Besides, the document called for a move to fill the data gaps to make policymaking easier.
