The IMF and FSB published a joint document containing crypto policy recommendations. In particular, the article noted:

⚫ Stablecoins created to hold a fixed value can suddenly become volatile and pose significant risks to financial stability.

⚫ While the processes used to provide DeFi services differ from traditional financial platforms, DeFi “does not differ significantly from the traditional financial system in terms of the functions it performs.”

⚫ While DeFi attempts to replicate some functions of the traditional financial system, it can increase and inherit risks and vulnerabilities in traditional systems.