IMF gives updates regarding the crypto market and global financial stability. On Tuesday, the IMF announced the report on Twitter. People can also check and download the report.
The IMF’s Report
The IMF has released information regarding the economic situation right now. The title of the report is Gloomy and More Uncertain. It is related to the ups and downs in the market due to some conditions. For example, COVID-19 situations and the war between Ukraine and Russia.
After a tentative recovery in 2021, the economic outlook has turned gloomy and uncertain, with the probability of a global recession. The latest #WEO explains the reason behind the downgrade to our growth projections. https://t.co/ldMsaieJUU pic.twitter.com/PbpvScahsN
— IMF (@IMFNews) July 26, 2022
IMF stated, “Several shocks have hit a world economy already weakened by the pandemic: higher-than-expected inflation worldwide––especially in the United States and major European economies––triggering tighter financial conditions; a worse-than-anticipated slowdown in China, reflecting COVID- 19 outbreaks and lockdowns; and further negative spillovers from the war in Ukraine.”
The Crypto Market
Regarding the crypto market, the IMF commented that they know crypto assets have experienced hardships in the market that resulted in losses in crypto investments.
IMF said, “Crypto assets have experienced a dramatic sell-off that has led to large losses in crypto investment vehicles and caused the failure of algorithmic stablecoins and crypto hedge funds, but spillovers to the broader financial system have been limited so far.”
The “algorithmic stablecoin” referred to the recent news about blockchain Terra.
The statement means that even though the situation in crypto has ups and downs, it has not affected global financial stability.
People in the community are already aware of the uncertainty in the market. It is normal to be cautious when it comes to digital currencies as it is deemed risky.