The decentralization and financial freedom of cryptocurrencies are their greatest ally and the IMF wants to end this advantage, which in addition to being a claim for many investors is also responsible for prices sinking every few months.
If you are one of those who follow bitcoin news every day and you love to see how the other cryptos are doing, surely you have been somewhat concerned for a few weeks about the decreases that are taking place.
Shiba Inu from rising like foam to crashing, Ethereum from breaking records to going downhill without brakes and bitcoin from speculating that it would reach 100,000 dollars to pray that it should go down.
For this reason The International Monetary Fund (IMF) has called for comprehensive, coherent and coordinated global regulation to protect stability of the world’s financial systems. And it is logical, since this volatility of crypto affects the global financial system.
This harsh appeal was made yesterday in a post by Tobias Adrian, director of the IMF’s Capital and Monetary Markets Department, and his deputies Dong He and Aditya Narain.
All three write that, although the 2.5 billion dollar market capitalization of cryptocurrencies indicates that the blockchain has real value, it can also reflect foam in a stretched appraisal environment, they explain.
They even put in the point of looking at some stablecoins, since no matter how much they are backed they can give inaccurate information about their value, thus altering the market.
And although several countries are adapting current regulations or developing new ones to regulate cryptos, The IMF fears precisely that existing laws and regulations do not allow for international approaches that comprehensively cover all elements of these assets.
Unsurprisingly, the authors suggest that the IMF’s Financial Stability Board use its current coordinating role to develop a global framework for developing relevant regulations around cryptocurrencies.