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By Nada Choueiri, Anne-Marie Gulde-Wolf and Tara Iyer
Crypto trading volume, and co-movement with equity markets, has surged in the region.
Few parts of the world have embraced crypto assets like Asia, where top adopters include individual and institutional investors from India to Vietnam and Thailand. This raises the important issue of the extent of integration of crypto into the financial system in Asia.
While digitalization can aid in the transition to an environmentally-conscious payment system and also foster financial inclusion, crypto can pose financial stability risks.
Before the pandemic, crypto seemed insulated from the financial system. Bitcoin and other assets showed little correlation with Asian equity...
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https://blogs.imf.org/2022/08/21/crypto-is-more-in-line-with-asian-equities-h...
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