The International Monetary Fund (IMF) thinks crypto has the potential to put pressure on the banking sector.
In a new report, the IMF says technological innovation is changing financial services. The report notes that the banking sector could lose market share if the crypto ecosystem grows to become a mainstream alternative to bank deposits or current lending options.
The IMF explains,
The IMF also warns that the crypto ecosystem comes with “consumer fraud and market integrity risks,” specifically cautioning against “meme tokens” such as Shiba Inu (SHIB).
The IMF isn’t the only institution issuing warnings about crypto’s potential impact on legacy finance. Last week, researchers at the Federal Reserve said digital assets could pose a threat to the supremacy of the US dollar.