IMF Issues Warning Concerning Cryptocurrency Industry

The financial institution, International Monetary Fund (IMF), recently released their World Economic Outlook (WEO) on October 3, 2018, a survey that speculates on the world economy in the near and medium term, with projections for up to four years into the future, that contains a warning directed towards the cryptocurrency industry.

The IMF publishes the WEO biannually and is updated two times a year. This October conveyed that with the rapid expansion of cryptocurrency, there could develop new weakness in the international financial system. Amidst a time of hacks and exploits in the nascent industry, the report focused on cybersecurity breaches and cyberattacks , as well as the employment of cryptocurrency’s role in illicit activities.

The can be found on the IMF’s official website, and it stated:

“Cybersecurity breaches and cyberattacks on critical
financial infrastructure represent an additional source
of risk because they could undermine cross-border payment
systems and disrupt the flow of goods and services.
Continued rapid growth of crypto assets could create
new vulnerabilities in the international financial system”

The IMF is also wary of the decentralized nature of the crypto industry. Due to cryptocurrencies being decentralized, they become a nuisance to maintain authority over, which many crypto enthusiast claim is the reason the digital assets exist, and can lead higher risk of security breaches.

While this isn’t the first warning concerning cryptocurrencies, it doesn’t paint them in a good light.