By CNBCTV18.com Oct 13, 2021 8:32:01 PM IST (Updated)
IMF says that widescale crypto adoption like the one seen in El Salvador poses “macroeconomic, financial and legal issues”
The International Monetary Fund has once again highlighted the risk that wide-scale cryptocurrency adoption can bring to financial markets. This time, the international group underscored the risks associated with the adoption of cryptocurrency as legal tender by countries.
“The adoption of a crypto asset as the main national currency carries significant risks and is an inadvisable shortcut,” the fund said in its annual Global Financial Stability Report, which was released on October 12.
Some of the risks of crypto adoption pointed out include “macro-financial stability, financial integrity, consumer protection, and the environment”.