Issuing centralized digital currencies similar to cryptocurrencies, and optimizing cross-border payments to counteract the “explosive growth” of these currencies

The International Monetary Fund (IMF) has become IMF) The latest major global body to enter into a call for the world's governments to respond to cryptocurrency adoption or suffer the consequences.

In its new Global Financial Stability Report, the International Monetary Fund addresses “financial stability challenges” in the “cryptocurrency ecosystem.”

Accordingly, he suggested that economic leaders counter cryptocurrencies by issuing their own central bank digital currencies (CBDCs).

In another post, the International Monetary Fund acknowledged that cryptocurrency offers “Quick and easy payments", In addition to "Financial Services innovative and "Universal access to parts of the world that were not previously circulated".

He wrote that the cryptocurrency ecosystem is also thriving, filled with exchanges, wallets, miners and stablecoin issuers.

But he also cautioned that cryptocurrency is fraught with significant consumer protection risks, due to limited or inappropriate disclosure and oversight, noting that some currencies are likely to have been created solely for speculative purposes or even outright fraud.

In a related context, the International Monetary Fund claimed that “crypto” was a risk in emerging economies, as the “adopt of cryptocurrency” exceeded the advanced economies.

Because of factors such as the central bank's weak credibility, the weak banking system, as well as inadequate payment networks.

Central Bank spokespersons added that this crypto could reduce the ability of central banks to effectively implement monetary policy, and introduce financial stability risks, through financing and solvency risks arising from currency mismatch.

They noted that this could also harm consumers and undermine financial integrity.

What is the solution according to the International Monetary Fund?

1- More regulation, more security, and more digital central bank currencies.

2- Policy makers should implement global standards for crypto assets.

3- Their ability to monitor the encryption system should also be enhanced by addressing data gaps.

4- Emerging markets facing crypto risks should also strengthen macroeconomic policies and consider the benefits of issuing central bank digital currencies.

Globally, the International Monetary Fund has stated that policy makers should prioritize cross-border payments faster, cheaper and more transparent and inclusive using plans developed by the G20.

It also called on national regulators to prioritize the implementation of existing global standards, strengthening applicable securities, payments, clearing, and settlement protocols.

Stablecoin issuers were given yet another warning of a possible regulatory storm ahead.

Bank spokesmen summarized that as the role of stablecoins grows, regulations must be proportional to the risks they pose and the economic functions they serve.

The commission's suggestion was that the rules should be harmonized with entities that offer similar products, such as bank deposits or money market funds.