IMF: Tokenization Could Transform Settlement and Financial Stability, but Fragmented Rules Pose Systemic Risk

The International Monetary Fund (IMF) has issued a statement regarding the potential of tokenization in financial markets. The global lender says that blockchain-based finance could streamline settlement processes and improve overall financial stability. However, it also warns that fragmented standards and regulatory frameworks across different countries and regions could create new systemic risks. The IMF urges international coordination to harmonize technical standards and regulatory approaches, aiming to harness the benefits of tokenization while mitigating potential threats to global financial stability.