IMF Economists hints crypto bubble near to blast
Experts of the International Monetary Fund shared their point of view on the next phase of the crypto cycle, which is full of risk.
Crypto and blockchain adoption is surging day by day rapidly, despite huge volatility in the prices. However, if we look in the market, then we will find that the majority of the crypto assets surged already with very high differences by many folds. But still, money flow in this industry is increasing rapidly. This is a pure indication that people are not taking tension about the top buyer risks.
Recently Tobias Adrian, Tara Iyer, and Mahvash S. Qureshi analyzed this crypto market. These economists are experts at their level in the International Monetary Fund ( IMF).
According to the published post on the Crypto risks, IMF Economists stated that the whole crypto industry may result in a huge loss for the investors since the majority of the crypto assets are now matured.
“Crypto-assets such as bitcoin have matured from an obscure asset class with few users to an integral part of the digital asset revolution, raising financial stability concerns”
The report also noted that IMF analysts don’t believe that crypto assets may be a good option for the long term. They stated that ” cryptocurrencies are not a long term fringe of the financial system.”
However, at the same time, economists also asserted that such a high risk-based assets market needed a highly strict regulation system.
Earlier in October 2021, around three Economists at IMF published a report on the crypto industry and noted that the crypto industry poses a huge risk to the financial system and its stability.
“Cryptoization can reduce the ability of central banks to effectively implement monetary policy. It could also create financial stability risks.”
Fed chair on crypto
Jerome Powell, chairman at Federal Reserve, shared his stance in December 2021 and claimed that the crypto industry is not posing any kind of risk to the global financial stability but he asserted that proper regulation is needed especially for the stable coins.
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