The Crypto Crash Didn’t Quite Harm the Broader Financial System
The International Monetary Fund (IMF) said on Tuesday that the turmoil in the cryptocurrency market hadn’t really affected global financial stability.
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- In a report released Tuesdaythe IMF said crypto assets have “seen a dramatic sell-off” that has led to losses in crypto investment vehicles and caused the failure of algorithmic stablecoins and crypto hedge funds, “but the fallout on the financial system at the broad sense have been limited so far”.
- The IMF added that higher-than-expected global inflation, a worse-than-expected slowdown in China and further negative fallout from the war in Ukraine hit a global economy already weakened by the pandemic.
- Jerome Powell, Chairman of the US Federal Reserve, said last month that the central bank “doesn’t really see any significant macroeconomic implications so far” when it comes to recent crypto volatility.
- In May, US Treasury Secretary Janet Yellen mentioned the Terra UST fiasco during a hearing and reiterated her stance on better oversight of crypto, including stablecoins.
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