The Imf (International monetary fund) released a set of policies for the emerging markets and developing economies to ensure fiscal stability amid global crypto adoption.

The IMF believes in the potential of crypto assets as a tool for faster and cheaper cross-border payments, citing the dramatic increase in the value of the crypto markets despite the bearish trends from May 2022. The report attributes high returns, transaction costs and speed and reduced Anti-Money Laundering (AML) standards equally the main drivers for crypto adoption.

To counter the resultant financial stability challenges as a result of increased trading of crypto avails, International monetary fund recommends that:

"Policymakers should implement global standards for crypto assets and enhance their ability to monitor the crypto ecosystem by addressing data gaps. [...] Emerging markets faced with cryptoization risks should strengthen macroeconomic policies and consider the benefits of issuing central bank digital currencies."

The International monetary fund written report shows that the crypto market place valuation has expanded beyond Bitcoin (BTC), along with a sharp increase in stablecoin offerings. Three years of IMF data suggests that chance-adapted returns of not-stablecoin crypto assets such equally Bitcoin are comparable to other mainstream benchmarks like South&P 500, as detailed in the figure beneath:

Also central depository financial institution digital currency (CDBC) issuance, the Imf farther recommends "proportionate regulation to the risk and in line with those of global stablecoins." In addition to CBDC implementation, de-dollarization policies will help governments tackle macro-financial risks.

Related: IMF intends to 'ramp up' digital currency monitoring

Back in July 2022, Cointelegraph reported on the IMF'south program to "step up" the monitoring of digital currencies. Highlighting the benefits of digital assets, an older IMF report read that "payments volition become easier, faster, cheaper and more accessible, and will cross borders swiftly. These improvements could foster efficiency and inclusion, with major benefits for all."

The Imf has besides previously planned to meet Salvadoran President Nayib Bukele for discussing the implications and possibilities of mainstream Bitcoin adoption.