International Monetary Fund Warns of More Crypto Sell-Offs, More Coins Fail – Markets and Prices Bitcoin News

A director at the International Monetary Fund (IMF) has warned of further sell-offs in both crypto assets and stocks. He also warned that more tokens could fail.

IMF Expects More Cryptocurrency Selling Pressure

Tobias Adrian, director of money markets and capital at the International Monetary Fund (IMF), warned of more selling pressure in the cryptocurrency market and more crypto failures in an interview with Yahoo Finance on Wednesday.

He said:

We could see more selling, both in crypto assets and in risky asset markets, such as stocks.

“There may be more failures in some coin offerings — in particular, some algorithmic stablecoins that have been hit hard, and there are others that could fail,” he explained. The IMF chief also expects crypto to fall further amid the recession.

In May, cryptocurrencies Terra (LUNA) and terrausd (UST) exploded, prompting SEC President Gary Gensler to warn that many crypto tokens will fail.

Adrian also warned of the possibility of experimenting with stablecoins backed by foreign currencies, something that both Treasury Secretary Janet Yellen and the Federal Reserve have warned about.

talk about rope (USDT) In particular, the Executive Director of the International Monetary Fund stressed, “There are some weaknesses there because they are not supported.” Noting that some stablecoins are “backed by somewhat risky assets,” he emphasized, “It is certainly a weak point that some stablecoins are not fully backed by cash-like assets.”

However, Adrian does not see an immediate threat on a par with the 2008 financial crisis, stating:

What was very worrying about the 2008 crisis was that banks were very exposed to shadow banks, and we don’t see this exposure of banks to shadow banks through cryptocurrency right now.

Moreover, the IMF director noted that regulations are necessary to protect investors and the financial system. Referring to the huge number of cryptocurrencies out there, Adrian said:

Regulating the coins themselves would be difficult, but regulating entry points such as exchanges and portfolio providers to invest in those coins is very concrete and very feasible.

The International Monetary Fund also published a report on Tuesday that said: “Crypto assets experienced a massive sell-off that led to significant losses in crypto investment vehicles and caused the failure of stable algorithms and crypto hedge funds, but the spillover effects on the broader financial system were so limited. Even limited right Now “.

What do you think of the comments of the Director of the International Monetary Fund? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been a missionary ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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