- The regulator published a report presented at the G-20 summit in February
- It warns participating countries about the potential fiscal risks of cryptocurrencies
- Allegedly, their distribution harms banks
- The report was published a few days after the liquidation of Silvergate and SVB
- Both organizations worked closely with counterparties in the crypto-currency field
In February, the research group of the International Monetary Fund (IMF) presented to the participants of the G-20 summit the report “The Macro-Financial Impact of Crypto Assets”. It was only released today, March 13th.
Paradoxically, but This occurred just days after the collapse of first Silvergate Capital and then SVB. And the report explicitly states that the further spread of cryptocurrencies will harm the banking sector:
“The widespread adoption of crypto assets poses significant risks to the effectiveness of monetary policy measures, exchange rate and capital flow management, and fiscal stability. Also, in the long term, there may be a need for changes in the reserves of the Central Bank and the global financial safety net, which leads to potential instability. Finally, banks may lose deposits and be forced to cut lending.”
It is noteworthy that the report was prepared by a focus group with the participation of the Indian Ministry of Finance. Recall that it is this country that calls for the creation of a unified regulatory framework in order to limit the circulation of cryptocurrencies.
The authors of the report also acknowledge that government agencies can use distributed ledger technology for their own purposes. But at the same time, they also call for “filling in the gaps” in the policy of partner countries in relation to this market.