[Digital Today reporter Chi-gyu Hwang] The International Monetary Fund has warned that tokenised finance promises cost cuts and an end to payment delays, but could also trigger a financial crisis at a speed central banks may struggle to counter, The Block reported on April 4 (local time).

In a report written by IMF financial counsellor Tobias Adrian (Tobias Adrian), the IMF defined tokenisation not as a simple efficiency gain but as a “structural shift in financial architecture.”

The report contains the most detailed account among policy assessment reports dealing with systemic risks surrounding tokenisation.

Adrian’s biggest concern was that the inefficiencies tokenisation seeks to remove actually serve as shock absorbers. The traditional 2-day settlement cycle gives central banks time to supply liquidity, net exposures and intervene. Tokenised systems, by design, remove such buffering structures. Automated margin calls and algorithmic feedback loops can reduce the time available for intervention.

Adrian pointed to stablecoins as a structural vulnerability and likened them to money market funds. They work well in stable conditions but are vulnerable to bank runs when trust breaks down. “Stablecoins that cannot access central bank reserves need additional safeguards at the infrastructure level, such as high liquidity buffers and conservative margin policies, to offset settlement-asset risk,” he said.

The report also said tokenised lending has yet to show meaningful growth. The anonymity of blockchains makes credit assessment difficult, forcing reliance on over-collateralisation, and borrowers prefer direct negotiations with lenders over automated enforcement through smart contracts, he said.

Adrian also rejected the crypto industry principle that “code is law.” He said institutions that are systemically important must prioritise legal certainty obligations over automated execution. He urged that smart contracts, as core infrastructure, should include pre-defined intervention mechanisms for emergencies.