Money

IMF Calls Out Crypto Currency Disruption

In its latest World Economic Outlook report distributed on October 10, the International Monetary Fund expressed concerns cryptocurrencies could weaken the world financial system.

The IMF noted already significant challenges as “Cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk” to global markets. It then points out that within this atmosphere, “the rapid growth of crypto assets could create new vulnerabilities in the international financial system”

The IMF’s semiannual Global Financial Stability Report (GFSR), a parallel report released the first week of October, also flagged the need for global companies and financial organizations to recognize the “potential benefits” of crypto-assets. They offered that up despite also saying that “knowledge of… potential risks and how they play out is still developing.”

It was further noted that these new assets, especially when traded as part of an international system of digital trading operations, could be highly disruptive in its ability to rapidly cross borders. It also could open new risks on a much grander scale than ever before, if and when a major cyber-hack on such assets might happen.