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Dear friends, I am @aviral123 from India. How are you all, I hope you all are well. I am fine too . Today I am sharing my post with you in this community. Today I will share with you "Crypto risk assessment matrix c ram". I want to share my thoughts about this with you all. let's start

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A conceptual framework is provided to thoroughly identify the micro and external risks of cryptocurrencies. It is used as a tool proposed to evaluate the systemic risk of individual countries from a comprehensive perspective.

C-RAMs on the issue of adopting or rejecting cryptocurrencies reflect the importance of providing a comprehensive assessment of the associated risks.

A three-step approach framework called the Crypto Risk Assessment Matrix (C-RAM) has been created. The Country-level Crypto-Risk Assessment Matrix (C-RAM) has recently been introduced by the International Monetary Fund (IMF) in a working paper, according to Cointelegraph. Its purpose is to identify the opportunities related to native cryptocurrency and guide the user about the risks associated with it.

C-RAM contributes to maintaining financial stability globally. The International Monetary Fund has issued a notice on the “Crypto Risk Assessment Matrix”, which aims to help countries strengthen their trade and market policy frameworks. Crypto Risk Assessment Matrix C-RAM follows a three-step approach. In these three stages, the cryptocurrency related market is evaluated step by step and the associated risks are assessed.

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Three stages of C-RAM

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step 1

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The initial phase involves evaluating the crypto's "macro-criticality", or its potential impact on the macro-economy.

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Step 2

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The next step involves examining the indicators employed in traditional financial sector monitoring.

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Step 3

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The final stage deals with global macro-financial risks. Which can affect the risk assessment of a country.

The use of Bitcoin in the Central American country presents market fluctuations. Liquidity, and risk appetite are destabilizing its financial structure. According to sources, the IMF has advised El Salvador not to adopt Bitcoin due to significant risks including financial stability, consumer protection and financial instability.

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First of all we have to understand how important cryptocurrency is in any country.

• Many scholars and experts say that cryptocurrency is still not accessible to everyone, information about it is not available to everyone and especially because not enough data is being collected to organize it.

• A main point of evaluation around which the evaluation is based. Whether a digital asset is macro-critical in a given nation or not must be done qualitatively. Provide its data.

• The cryptocurrency is self-custodial, requiring no permissions, the authors note that people are using it in transactions with each other, and there are no regulations in place to do so to protect citizens in the region. .

• Based on the analysis, the argument is that authorities can try to implement better policies to reduce its risks.

• Going through the C-RAM process, it can be clearly seen that “there is no strong evidence that [the country's] financial sector is exposed to crypto.

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Conclusion

Over the past few years, the private crypto digital assets industry has experienced rapid growth and is also increasingly integrating into the global economy. Grant Thornton believes that this paper provides a robust mechanism to promote a balance between leveraging the benefits of cryptocurrencies, while minimizing the risks inherent in the activity while safeguarding the financial stability of the market.

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