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: IMF warns ‘cryptoization’ of emerging economies could threaten growth, financial stability

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The International Monetary Fund is warning that the growing popularity of cryptocurrency in emerging market economies poses a threat to their government’s ability to implement effective economic policy, while threatening financial stability in economies at every stage of development. “Widespread and rapid adoption” of cryptocurrencies, like bitcoin
BTCUSD,
-1.84%
and ether
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-2.49%,
in emerging markets “can pose significant challenges” when “residents start using crypto assets instead of the local currency,” IMF researchers Dimitris Drakopoulos, Fabio Natalucci and Evan Papageorgiou wrote in a blog post accompanying a new financial stability report on crypto assets, published Friday.

The IMF researchers …

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