Crypto currency, a threat to financial stability- IMF

International Monetary Fund (IMF) has warned against the adoption of Crypto currency, saying it can threaten financial stability of emerging markets. According to the IMF, Crypto currency poses new challenges to financial stability and consumer protection risks remain substantial given limited or inadequate disclosure and oversight.  
The total market value of all the crypto assets surpassed 2 trillion dollars as of September 2021, a 10-fold increase since early 2020.
IMF’s financial experts said, anonymity of crypto assets also creates data gaps for regulators and can open unwanted doors for money laundering, as well as terrorist financing. Although authorities may be able to trace illicit transactions, they may not be able to identify the parties to such transactions, they said. Additionally, the crypto ecosystem falls under different regulatory frameworks in different countries, making coordination more challenging, IMF said. Bitcoin and its kin have in the last year soared in price and popularity, with emerging and developing market economies such as Vietnam, India and Pakistan seeing rapid growth in some measures of adoption, according to U.S. blockchain researcher Chainalysis. In September, El Salvador became the first country in the world to adopt bitcoin as legal tender, with backers tipping the experiment to lower costs for billions of dollars of remittances sent to the Central American nation.