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IMF against abandoning investment in the crypto sector

The International Monetary Fund (IMF) has urged investors not to abandon the crypto world even after the recent collapse of a popular stablecoin, TerraUSD, or UST. Kristalina Georgieva, the IMF's managing director, explained how important crypto is becoming in the lives of the people around the world. She said it is the responsibility of financial regulators to put up guardrails and offer education to protect investors. Georgieva also said that there are many different types of assets with varying levels of associated risk. For instance, there is a big difference between stablecoins that are backed by cash and other assets and those that rely on algorithms to maintain their value, like the Terra coin. Stablecoins are a type of cryptocurrency that are supposed to maintain a 1-to-1 value to a reserve asset like the US dollar.

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