The IMF warns that tokenized markets could exacerbate the risk of flash crashes, and governments will step in to regulate them

According to Cointelegraph, the international monetary fund (IMF) has released a new video warning that while tokenizing the market can make financial transactions faster and cheaper, the technology also poses 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 transactions may lead to increased market volatility and flash crash risk. Complex chains of smart contracts can have a chain reaction like "dominoes" under market pressure, turning local problems into systemic shocks. The IMF predicts that, based on historical experience, governments will not remain on the sidelines of this important monetary evolution, and will play a more active role in the field of tokenization in the future.