The International Monetary Fund (IMF), which is generally not that wordy about cryptocurrencies, has recently stated that further development of digital assets, and bitcoin in particular, may cause a serious threat to the international financial environment.
IMF recently released the World Economic Outlook 2018, which warns about the threats posed by the cryptocurrency industry. The warning reads that INF is worried about the increasing popularity of cryptocurrencies against the background of their widespread criminal use and despite high risk associated with hacking.
As pointed out by the authors of the document, decentralized nature of cryptocurrencies entails many risks as well, as they are harder to control than national fiat currencies. IMF believes that this is a potential threat to the financial world as a whole.
“Cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services. Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system,” – the document reads.
The position adopted by the IMF is contrary to that held by the Financial Stability Board (FSB). The latter believes that cryptocurrencies do not pose any threat to global economic stability due to their insignificant market capitalization.