IMF warns that the tokenization market may exacerbate flash crash risks, and the government will intervene in regulation

According to Cointelegraph, the International Monetary Fund (IMF) has 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 it also points out that automated trading may increase market volatility and the risk of flash crashes. Complex chains of smart contracts may react like "dominoes" 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 monetary evolution and will play a more active role in the field of tokenization in the future.