The cryptocurrency market is waiting for a fall in the event of a recession in the economy. This opinion was expressed by the head of the department of monetary systems and capital markets of the International Monetary Fund (IMF) Tobias Adrian, writes Yahoo Finance.
He did not rule out the further sale of crypto assets and shares by investors, as well as the possible collapse of various algorithmic stablecoins.
An IMF spokesman noted that some “stablecoins” that are not fully backed by cash are at greater risk. For example, a stablecoin from Tether lost its peg to the US dollar for a short time amid the collapse of TerraUSD.
A recent IMF report states that the massive sell-off in the cryptocurrency market did not have much of an impact on the global financial system.
However, Adrian noted the need for regulation to protect investors. In his opinion, the relevant authorities should ensure that participants in the bitcoin market comply with securities laws, as well as control over the infrastructure of the crypto industry:
“There are 40,000 coins. Regulating the coins themselves is difficult, but regulating exchanges and investment wallet providers is doable.”
Recall that Tether promised to reduce to zero the share of commercial paper in its stablecoin collateral portfolio no later than November 2022.
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The cryptocurrency market is waiting for a fall in the event of a recession in the economy. This opinion was expressed by the head of the department of monetary systems and capital markets of the International Monetary Fund (IMF) Tobias Adrian, writes Yahoo Finance.
He did not rule out the further sale of crypto assets and shares by investors, as well as the possible collapse of various algorithmic stablecoins.
An IMF spokesman noted that some “stablecoins” that are not fully backed by cash are at greater risk. For example, a stablecoin from Tether lost its peg to the US dollar for a short time amid the collapse of TerraUSD.
A recent IMF report states that the massive sell-off in the cryptocurrency market did not have much of an impact on the global financial system.
However, Adrian noted the need for regulation to protect investors. In his opinion, the relevant authorities should ensure that participants in the bitcoin market comply with securities laws, as well as control over the infrastructure of the crypto industry:
“There are 40,000 coins. Regulating the coins themselves is difficult, but regulating exchanges and investment wallet providers is doable.”
Recall that Tether promised to reduce to zero the share of commercial paper in its stablecoin collateral portfolio no later than November 2022.
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
Found a mistake in the text? Select it and press CTRL+ENTER
