The International Monetary Fund (IMF) introduces a three-step approach, the Crypto-Risk Assessment Matrix (C-RAM), to evaluate macro-financial risks associated with cryptocurrencies within countries. Learn how this innovative approach can help combat crypto risks.
The International Monetary Fund (IMF) has unveiled a novel approach to tackle the challenges posed by cryptocurrencies. Named the Crypto-Risk Assessment Matrix (C-RAM), it offers a comprehensive three-step strategy to evaluate and manage macro-financial risks linked to cryptocurrencies at a national level.
C-RAM’s first phase employs the decision tree method, which assesses the “macrocritical” nature of crypto assets within an economic context. It scrutinizes whether crypto assets significantly influence a country’s economic landscape.
In the second phase, C-RAM focuses on quantifying crypto-related risks within an economy, emphasizing systemic importance. This entails evaluating metrics like the crypto asset market cap as a percentage of GDP, crypto adoption indicators, and DeFi adoption within a country.
The final step involves synthesizing the data and insights gathered in the first two phases to formulate a comprehensive understanding of the crypto-related risks within a country. This innovative approach provides countries with a structured method to navigate the complexities of crypto risks while maintaining a holistic perspective.