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IMF WARNING SHOULD BE TAKEN WITH ALL ALERT

IMF WARNING SHOULD BE TAKEN WITH ALL ALERT

The IMF warning this morning in a new report on global financial stability that the rise of cryptocurrency in emerging markets could be a threat to the global financial system. Now the IMF also claims that the Ukrainian war has revealed that there are risks to crypto payment systems.


The IMF says in the report, quoting, "The effects of the Russian invasion of Ukraine and subsequent sanctions continue to multiply around the world and will test the strength of the financial system through various channels, including accelerating cryptoization of emerging markets, direct and indirect exposure to banks and non-banks, and related events. and possible internet. "


We have now seen an increase in the use of cryptocurrencies in emerging markets since the beginning of the epidemic. And the IMF has stressed that trading prices of crypto assets against certain growing market currencies have increased since the West allowed Russia. Tether, after all, the largest stablecoin used to settle trades and derivatives, has seen a rise in trading volumes compared to growing market currencies. That spike is particularly noticeable in Turkey, where exchange rates have skyrocketed, and the full use of crypto assets has gained momentum over the past few years.


The IMF has also warned that cryptocurrencies could be used to avoid sanctions. U.S. Secretary of Finance Janet Yellen has noted that too, though she says that the Treasury has not seen much evidence that crypto is being used to avoid such penalties. Now, Akiko, the IMF recommends that policy makers come up with a set of international standards for digital asset management to ensure protection from these global financial system risks, noting that fragmented financial platforms, as well as fintech firms, need more attention. . Back to you.


BRIAN CHEUNG: Jennifer Schonberger of Yahoo Finance, thank you very much. Let’s take a look at Bitcoin because there is a lot of movement going on in the crypto space. It is currently trading at over $ 41,000. It was actually less than 40,000 yesterday, a lot of movement today.


But apparently, that is because crypto companies trading publicly are facing greater losses than real digital assets, at least, the trend noted since later. You can see Coinbase competing with Bitcoin right now, it actually does it in a very different way. So, you know, it doesn't always happen that Bitcoin and Coinbase and all other stocks or nearby crypto assets go through a lockstep, Akiko.


NO FUJITA: Yes, one Coinbase, one Robinhood and one that we follow. And you have to ask yourself how much that is about moving in line with crypto, how much is about how those companies are doing on their balance sheet. We also looked at some of the ETFs of-- well, there is Robinhood. It exists today. But we're also-- we have been looking at other ETFs exposed to Bitcoin because, remember, when these ETFs were introduced last year, it was not a direct investment in crypto.



AKIKO FUJITA: And those critics would say, look, this is not about direct investment in crypto itself. And that did not go well. He looks where they are today, they are upstairs. But if you look at something like ProShares, that's up almost-- down about, what, 40% from the top we saw--



AKIKO FUJITA: A year so far, but I think year after year. Where-- because when you think about where Bitcoin was trading, we saw a rise in November last year. Everything has been like going downhill and slowly since then. So, obviously, those ETFs are trading accordingly.


BRIAN CHEUNG: And, you know, I mean, there was a time when, before, we talked about Elon Musk and Twitter every day. I mean, this was a very hot thing.



BRIAN CHEUNG: Look, I'm a fan of financial markets, and I liked it when everyone was interested in ETFs because they got a lot of people interested in finding out how these stocks are trading. And, you know, when the ProShares product, which was the first to come out, also, the Bitcoin spot ETF, had high hopes that you knew what was next? The Bitcoin spot ETF, right, as opposed to the future, is what the ProShares ETF is all about.


So, obviously, the SEC has been moving on that topic. Gary Gensler is the kind of hit every time he is asked about it, about the potential ETF pin of real Bitcoin will emerge. See, we have not yet received comments suggesting that it will come soon. But, you know, when you saw that ripping up last year, it was probably the reason why. But look, since then, the SEC has said nothing about that issue.



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