Crypto
IMF warns tokenisation may deepen flash crashes, expects government intervention
The International Monetary Fund underscores advantages and dangers of tokenisation, warning that automated trading could intensify volatility and cause flash crashes. It says weak interoperability may fragment markets and worsen liquidity. The IMF notes that governments have historically stepped into financial innovation and predicts increased regulatory involvement in tokenised markets, citing the 1944 Bretton Woods Agreement as an example of state-led system redesign.
