The IMF warns that the tokenization market may exacerbate the risk of flash crashes, and the government will intervene in regulation.

MarsBitNews

According to Mars Finance, Cointelegraph reported that the International Monetary Fund (IMF) recently released a video warning that while the tokenization market can make financial transactions faster and cheaper, this technology also brings new systemic risks. The IMF acknowledges that tokenization can lead to significant cost savings by reducing intermediaries and enabling instant settlement, but also points out that automated trading may increase market volatility and the risk of flash crashes. Complex smart contracts could create a domino effect under market pressure, transforming localized issues into systemic shocks. The IMF predicts that based on historical experience, governments will not remain passive in this important monetary evolution and will play a more active role in the tokenization field in the future.

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