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

According to ChainCatcher news and Cointelegraph reports, the International Monetary Fund (IMF) has 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 at the same time points out that automated trading may increase market Fluctuation and the risk of flash crashes. Complex smart contracts chains may react in a “domino effect” under market pressure, turning localized issues into systemic shocks. The IMF predicts that, based on historical experience, governments will not remain passive in this important currency evolution and will play a more active role in the field of tokenization in the future.