Summary: In its 2021 Global Financial Stability Report, the IMF says cryptocurrency doesn't yet pose a systemic threat to the international system but that "risks should be closely monitored given the global implications and the inadequate operational and regulatory frameworks in most jurisdictions." The report argues for regulations that ensure investors know how stablecoins are backed. ...

In its 2021 Global Financial Stability Report, the IMF says cryptocurrency doesn't yet pose a systemic threat to the international system but that "risks should be closely monitored given the global implications and the inadequate operational and regulatory frameworks in most jurisdictions."

The report argues for regulations that ensure investors know how stablecoins are backed. To address those inadequacies, it calls for "global standards for crypto assets." Doing so, it believes, could help fend off a "contagion risk" to other markets. 

By Amy Liu