The latest report by the International Monetary Fund (IMF) says cryptocurrencies do not pose any financial stability risk.
IMF expressed limited concerns about leveraged trading of cryptos, the integration of crypto-assets into mainstream products, and the cross-border character of the digital assets.
“It is impossible to know the extent to which crypto assets may transform the financial infrastructure and whether most new crypto assets are likely to disappear as in past episodes of technological innovation (as many tech companies did during the boom of the late 1990s, for example).
“Before they can transform financial activity in a meaningful and lasting manner, crypto assets will first need to earn the confidence and support of consumers and financial authorities.”
Even at that, IMF advised regulators to be at alert about potential financial challenges, saying a few aspects of them “deserve monitoring.”
The report entitled, Global Financial Stability Report, however raised concerns about leveraged trading of cryptocurrencies.
IMF isn’t the first financial authority to raise leveraged concerns, other regulatory bodies have previously addressed their worries about leveraged cryptocurrency trading.
The European Securities and Markets Authority and the United Kingdom’s Financial Conduct Authority have raised similar concerns in the past.