IMF's data shows the increasing interconnectedness of crypto and equity markets in Asia.
IMF’s data shows the increasing interconnectedness of crypto and equity markets in Asia.
The organization noted that digitalization can prompt a much-needed shift to an environmentally-conscious payment system and also aid financial inclusion. However, the potential financial stability risks associated with the integration of crypto into the financial system in Asia cannot be ignored.Investors in the region have piled up a massive amount of crypto, closely following the global trend.
Interestingly, the IMF also found that the rise in crypto-equity correlations in the continent has been accompanied by a surge in crypto-equity volatility spillovers in countries like India, Vietnam, and Thailand.