IMF warns of market crisis from crypto-based financial system

IMF warns of market crisis from the crypto-based financial system Although blockchain technology helps accelerate transaction processing and eliminates settlement delays, it also hides a major vulnerability that could quickly trigger a financial crisis. The IMF headquarters in Washington, D.C. (Source: Reuters/TTXVN) The International Monetary Fund (IMF) has warned that switching Wall Street's trading infrastructure to blockchain-based systems could accelerate the spread of financial crises beyond regulators' capacity to respond, even though the technology promises lower costs and faster settlement. In a report released on April 2, IMF representative Tobias Adrian stressed that 'tokenization'—the digitization of assets such as stocks, bonds, and cash into digital tokens on a shared ledger—is not merely about improving efficiency but represents a fundamental redesign of the global financial architecture. Banks, clearinghouses, and asset management giants such as BlackRock and JPMorgan Chase have begun piloting crypto-finance projects. Most firms expect advances in technology to optimize trading fees and simplify buying and selling of traditional assets. In September 2025, Nasdaq filed with the U.S. Securities and Exchange Commission (SEC) a proposal to allow tokenized shares to be traded on regulated platforms. Earlier this year, the New York Stock Exchange (NYSE) announced that it is building a platform using blockchain to permit trading of tokenized stocks and 24/7 ETFs. SEC Chairman Paul Atkins expressed support for this crypto trend. IMF experts note that settlement delays act as a cushion that gives central banks and regulators time to intervene in crises. According to the IMF report, market-stress events could unfold more quickly, leaving authorities less time to implement decisive interventions. In past crises, settlement delays served as a buffer, providing central banks and regulators with more time to intervene. In a real-time, 24/7 payment system, margin calls would arrive almost immediately. Meanwhile, central banks' emergency lending tools are largely designed to respond to crises that occur during regular business hours. Moreover, Mr. Adrian compared privately issued stablecoins—now increasingly used as payment assets—with money market funds: they perform well under normal conditions but are highly vulnerable to runs. Mr. Adrian urged policymakers to proactively respond to the reallocation of trust and risk. Proposed measures include anchoring payments to safe currencies and clarifying the legal status of tokenized assets. "The window of opportunity to shape the architecture of the crypto-financial system is opening, but it will not last forever. Policymakers must act decisively rather than merely react to manifestations of digital change," the report emphasizes. Vietnamplus