Senior IMF official warns cryptocurrencies could 'destabilise' emerging markets

Crypto a 'big challenge' for policymakers

A senior official at the International Monetary Fund has warned against cryptocurrencies, arguing their use over traditional currencies give rise to “immediate and acute risks”, particularly for emerging markets.

Speaking to the Financial Times, IMF financial counsellor and head of the NGO's monetary and capital markets department Tobias Adrian raised his concerns over how volatility in cryptocurrencies are causing "destabilising" capital flows in emerging markets. Adrian said cryptocurrencies pose a "big challenge" for policymakers in some countries, highlighting how cryptocurrencies have lost around $1trn since their peak. Cryptocurrency crime hit record $14bn in 2021 He said: "Capital flow management measures will need to be fine-tuned in the face of cryptoisation. Applying established r...