The IMF (International Monetary Fund) touched upon the ecosystem of decentralized finance (DeFi) in its reni report. Expressing that DeFi is more integrated with traditional finance in this process, the IMF stated that this situation creates a number of advantages and risks.
IMF Releases Global Financial Stability Report
The report of the International Monetary Fund (IMF) on global financial stability, published on Tuesday, also touched on the development of the cryptocurrency market and the ecosystem of decentralized finance (DeFi). The IMF noted that significant events on a global scale in recent years have led to the fact that cryptocurrencies have gained great popularity around the world.
The United States and the European Union announced a large number of sanctions packages with Russia’s war against Ukraine and imposed various economic sanctions against Russia. In this process, there has been a lot of talk and discussion about the fact that Russia can use cryptocurrencies to avoid these sanctions. The IMF also raised this issue in its report. The chief IMF, which deals with many issues from cryptocurrency mining to decentralized cryptocurrency exchanges, stated in his report that using cryptocurrencies to avoid sanctions is impractical. However, the IMF stressed the importance of a globally coordinated approach to regulation and emphasized “regulation”.
Emphasis on DeFi in the IMF report
Stating that DeFi has reached a higher level of acceptance by traditional financial institutions, the IMF stated that the ecosystem of decentralized finance has begun to integrate more and more with traditional finance in the process. The IMF added to its statements in the Global Financial Stability Report that a decentralized financial ecosystem has various advantages, such as high efficiency and financial accessibility, but also poses a risk to financial stability.