The IMF who happens to be a bit quiet than most other influential financial organization, on the topic of cryptocurrency has recently spoken up. The agency issued a stern warning concerning the crypto industry, especially bitcoin.
The IMF Warning
The International Monetary Fund (IMF) recently released World Economic Outlook entails a warning targeted at the cryptocurrency industry. This warning was stated on the official website of the organization. Based on the warning, IMF has shown that it is quite worried that the growth of cryptocurrency might eventually lead to fresh vulnerabilities in the international financial system.
The report from the IMF is mainly centred on the fact that cryptocurrencies are actively being used by criminals. The numerous report of hacking attacks on various exchanges has also not really helped the cause of cryptocurrency in general.
The organization also states it concern with the main focus of the industry, decentralization. It reported that the fact that cryptocurrencies are decentralized and harder to control than a nationally backed currency is likely to pose more security risk in the future.
The website content also added that:
“cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services”
It further added that:
“continued rapid growth of crypto assets could create new vulnerabilities in the international financial system”
IMF Warned Marshall Island’s Authorities
This is not the first time IMF will be issuing a warning concerning the use of cryptocurrency. The organization recently advised the authorities in the Marshall Islands not to make use of cryptocurrency as its national currency.
In the report released by the institution, they made their reasons known.
The report states that:
“the Marshall Islands economy is now “highly dependent” on external aid, as the country faces constant climate change and natural disasters.”