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

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 and ether ETHUSD, in emerging markets “can pose significant challenges” when “residents start using crypto assets instead of the local currency,” IMF researchers Dimitris...