
Regulation2m read
IMF Warns Tokenization Could Accelerate Financial Shocks Despite Efficiency Gains
The IMF warns that while tokenization can make finance faster and cheaper, it also renders the system more vulnerable to sudden shocks.

The IMF warns that while tokenization can make finance faster and cheaper, it also renders the system more vulnerable to sudden shocks.

The International Monetary Fund (IMF) has acknowledged tokenization's potential to revolutionize financial settlement, but warns of new systemic risks from fragmented regulations.

The Bank for International Settlements (BIS) cautions that the AI investment boom, fueled by substantial debt and leveraged nonbank structures, poses a significant systemic risk to global financial stability.