The cryptocurrency market expects a drop in case of a recession in the economy. This view was expressed by the head of the monetary systems and capital markets division of the International Monetary Fund (IMF), Tobias Adrian, writes Yahoo Finance.
It did not exclude the possible collapse of various algorithmic stablecoins, as well as further selling of crypto assets and shares by investors.
An IMF spokesperson noted that some “stable currencies” that are not fully backed by cash are at greater risk. For example, a stablecoin from Tether briefly lost its pegged to the US dollar amid the collapse of TerraUSD.
A recent IMF report states that the massive sell-off in the cryptocurrency market has not had much of an impact on the global financial system.
But Adrian noted the need for regulation to protect investors. According to him, relevant authorities must ensure that participants in the bitcoin market comply with securities laws and have control over the infrastructure of the crypto industry:
“There are 40,000 coins. It is difficult to regulate coins, but it is possible to regulate exchanges and investment wallet providers.”
Recall that Tether promised to reduce the share of commercial paper in the stablecoin collateral portfolio to zero by November 2022 at the latest.
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Source: Fork Log
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