Antonio Garcia Pascual, deputy director of the Global Market Analysis Department of the International Monetary Fund (IMF), said in a guest appearance on Coindesk TV that the sell-off in the crypto market has not really spread to the real economy, and has largely stayed within the crypto ecosystem. The impact on the wider financial system, Pascual said: What you’re seeing is quite a bit of change in riskier assets, including certain stablecoins and tokens in decentralized finance (DeFi).
Cryptocurrencies are expanding particularly rapidly in emerging markets, which are bearing the brunt of a worsening global economy, especially in countries with high debt, rising inflation and currency volatility, Pascual said, although the adoption of cryptocurrencies as legal tender may represent a technological progress and promote financial inclusion, but when these countries experience macro- and financial stability-related shocks, crypto adoption incurs more risks.
