IMF warns tokenized markets may deepen flash crashes, says governments will step in
Tokenization promises faster and cheaper markets, but the IMF warns that new risks and government intervention will accompany the shift to programmable finance.
The IMF dropped an explanatory video on its X handle today exploring the new phenomenon of tokenized markets.
The international body responsible for ensuring the stability of the global monetary system recognized the advantages of tokenized markets in the video, but warned that they can be prone to flash crashes and are more volatile than traditional markets.
“Tokenization can make financial markets faster and cheaper, but efficiencies from new technologies often come with new risks,” the video said.
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