The IMF 🏦 has released a report entitled “Elements of Effective Policies for Crypto Assets” which recommends that countries implement tighter regulations to oversee crypto assets to prevent potential risks that could impact the global financial system.
The report analyzes the benefits of cryptocurrencies, particularly their ability to facilitate cross-border transactions at a lower cost and faster speed than traditional methods. However, it also highlights that the fees for transferring cryptocurrencies can be higher when exchanging from one currency to another and may not always be cheaper than traditional methods. Furthermore, claims that cryptocurrencies can provide better access to banking services are not entirely true, as users need internet access and an understanding of the crypto world.
The IMF emphasizes the need for effective policies to manage the risks associated with cryptocurrencies, including money laundering, terrorism financing, and market volatility. They encourage countries to adopt a comprehensive regulatory framework that addresses these issues while promoting innovation and the development of the crypto industry. The IMF believes that a balanced and coordinated approach will be necessary to ensure the safety and stability of the financial system while harnessing the potential benefits of cryptocurrencies.
I personally agree that currently, crypto is only suitable for crypto trading 🤑