IMF warns tokenized finance could amplify market crises, urges central bank-anchored settlement
The Block
The IMF warns that tokenized finance may accelerate market crises by removing traditional settlement buffers, urging central bank-anchored solutions to ensure stability.Summary
The International Monetary Fund, led by Financial Counselor Tobias Adrian, warns that tokenization could destabilize financial markets by removing the time buffers inherent in traditional settlement systems. While tokenization offers efficiency, the report argues that automated, 24/7 processes lack the emergency intervention windows necessary for central banks to manage liquidity crises. The IMF advocates for a policy framework that anchors settlement in central bank reserves, mandates legal clarity for tokenized assets, and incorporates emergency override mechanisms into smart contracts to prevent systemic collapse.
(Source：The Block)