IMF Working Papers

Assessing Macrofinancial Risks from Crypto Assets

By Burcu Hacibedel, Hector Perez-Saiz

September 29, 2023

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Format: Chicago

Burcu Hacibedel, and Hector Perez-Saiz. Assessing Macrofinancial Risks from Crypto Assets, (USA: International Monetary Fund, 2023) accessed November 25, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Failures in the crypto space—including the fall of Terra USD and the FTX debacle—have sparked calls for strengthening countries’ policy frameworks for crypto assets, including by enhanced regulation and supervision. How have these heightened concerns about crypto assets been picked up in systemic risk assessment, and what can be done going forward? In this paper, we introduce a conceptual macrofinancial framework to understand and track systemic risks stemming from crypto assets. Specifically, we propose a country-level Crypto-Risk Assessment Matrix (C-RAM) to summarize the main vulnerabilities, useful indicators, potential triggers and potential policy responses related to the crypto sector. We also discuss how experts and officials can weave in specific vulnerabilities stemming from crypto asset activity into their assessment of systemic risk, and how they can provide policy advice and take action to help contain systemic risks when needed.

Subject: Blockchain and DLT, Credit risk, Currencies, Economic sectors, Financial regulation and supervision, Financial Sector, Money, Technology, Virtual currencies

Keywords: Analyzing Macrofinancial risk, Blockchain and DLT, Country-level Crypto-Risk Assessment Matrix, Credit risk, Crypto assets, Currencies, Financial sector, Global, Macrofinancial, Macro-prudential risk, Micro-prudential risk, Price fluctuation, Systemic risk, Virtual currencies, Vulnerabilities

Publication Details

  • Pages:

    35

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2023/214

  • Stock No:

    WPIEA2023214

  • ISBN:

    9798400255083

  • ISSN:

    1018-5941

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