TechFlow news, according to CoinDesk, the International Monetary Fund (IMF) has warned G20 nations that widespread use of crypto assets could lead banks to lose deposits and reduce lending. The IMF submitted a report on the "macro-financial implications of crypto assets" to the Group of Twenty during a meeting held in India in February, which was published on Monday, just days after crypto-friendly banks Signature Bank, Silicon Valley Bank (SVB), and Silvergate Bank collapsed.
The report stated: "Widespread use of crypto assets poses significant risks to the effectiveness of monetary policy, exchange rate management, capital flow management measures, and fiscal sustainability. In addition, central bank reserves and the global financial safety net may need to change, potentially creating instability. Finally, banks may lose deposits and be forced to cut back on lending." It also noted that "although the importance and relevance of specific risks vary by country circumstances, crypto assets present numerous risks." However, the report added that despite these "significant risks, crypto assets have developed technologies that the public sector can leverage to achieve its own policy objectives."Original link
