International Monetary Fund (IMF) Managing Director Kristalina Georgieva said that countries should “accept the reality” of rapid developments in cryptocurrencies.
Georgieva argued that financial systems should adapt to this transformation rather than resist it and manage risks.
The IMF issued significant warnings to central banks in its latest assessment. The institution emphasized the need to be vigilant against inflation risks stemming from customs duties and emphasized the need to avoid excessive easing of monetary policy. The IMF warned that such easing could lead to further increases in risky asset prices.
The statement noted that central bank independence is critical to balancing market expectations and ensuring institutions effectively fulfill their mandates. However, the IMF did not name any countries or institutions in this assessment.
The agency also called for “urgent fiscal adjustment” to control budget deficits and maintain the resilience of bond markets.
The IMF report also warned that increasing linkages between banks and less regulated non-financial institutions could exacerbate shocks in areas like private credit and cryptocurrencies. The IMF urged policymakers to assess these “hidden risks” more comprehensively and, in particular, closely monitor risk pass-through between banks and non-bank financial institutions.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/imf-chief-georgieva-speaks-positively-about-cryptocurrencies/
