LONDON—The advent of digital currencies in emerging markets could spark “cryptoization” of local economies, potentially undermining exchange and capital controls and upsetting financial stability, the International Monetary Fund said on Friday.
Bitcoin and its kin have in the last year soared in price and popularity, with emerging and developing market economies such as Vietnam, India, and Pakistan seeing rapid growth in some measures of adoption, according to U.S. blockchain researcher Chainalysis.
