The International Monetary Fund (IMF) has proposed a country-level risk assessment matrix to identify potential risks in the crypto sector and summarize potential policy responses. The Crypto-Risk Assessment Matrix (C-RAM) is a three-step approach that assesses crypto’s macro-criticality, looks at indicators comparable to those used to monitor the traditional financial sector, and considers global macro-financial risks. As an example, the authors applied C-RAM to El Salvador, which made Bitcoin a legal tender in September 2021. The authors identified market, liquidity, and regulatory risks associated with El Salvador’s use of Bitcoin. The IMF has urged El Salvador to drop Bitcoin’s legal tender status, citing potential risks to financial stability, financial integrity, and consumer protection. The IMF and the Financial Stability Board (FSB) collaborated on a joint paper containing policy recommendations for various risks associated with activities in crypto. The paper combined standards and consolidated recommendations for the crypto sector.

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Information	Details
Geography	North America
Countries	🇸🇻
Sentiment	neutral
Relevance Score	8
People	Financial Stability Board, Hector Perez-Saiz, El Salvador, IMF, Burcu Hacibedel
Companies	G20, International Monetary Fund (IMF), Financial Stability Board (FSB), Bitcoin (BTC)
Currencies	Ethereum, Bitcoin, ELYSIA
Securities	None