In its 2021 Global Financial Stability Report, the IMF states that cryptocurrencies do not yet pose a systemic threat to the international system.

However, according to the institution, "the risks must be closely monitored, given the global implications and inadequate operational and regulatory frameworks in most jurisdictions". To address these inadequacies, the IMF asks for "global standards for cryptographic assets" and can thus help to avoid a "risk of contagion" to other markets.

The IMF has great influence. It is an intergovernmental body of 190 member states that promotes global trade, poverty reduction and stable monetary policies.

Within the "COVID-19, Crypto, and Climate: Navigating Challenging Transitions" section of this year's report, the IMF shows some concerns about digital assets.

"The rapid growth of the ecosystem has been accompanied by the entry of new entities, some of which have weak operational, cyber risk management and governance structures," says the report.

The report spends a lot of space detailing how Stablecoins, which are typically indexed 1:1 to the US dollar or other fiat currencies, pose a risk for being regulated differently from jurisdiction to jurisdiction and for having managed to exit a market capitalization from $20 billion to more than $120 billion last year.

As for what to do about it, the IMF is not proposing a ban or crackdown, but rather encouraging regulators to take a closer look at Stablecoins and to introduce regulations for this type of asset.