IMF warns that tokenized markets may increase flash crash risks, and governments will intervene with regulation

ChainCatcher news, according to Cointelegraph, the International Monetary Fund (IMF) has released a new video warning that although the tokenization market can make financial transactions faster and less costly, this technology also brings new systemic risks.

The IMF acknowledges that tokenization can bring significant cost savings by reducing intermediaries and enabling instant settlement, but also points out that automated trading may lead to increased market volatility and a higher risk of flash crashes. Complex smart contract chains may trigger domino-like chain reactions under market stress, turning local issues into systemic shocks. The IMF predicts that, based on historical experience, governments will not remain bystanders in this important monetary evolution and will play a more active role in the field of tokenization in the future.