The International Monetary Fund (IMF) states that tokenized finance is not a gradual improvement to existing financial infrastructure, but rather a "reconstruction of market architecture" through smart contracts and shared ledgers, enabling near real-time settlement and 7x24 hours trading. However, the IMF also warns that automated margin mechanisms, real-time settlement, and programmable fund flows could amplify liquidity pressures during market volatility, as the time delays and intermediary buffering effects in traditional financial systems are diminished; additionally, code vulnerabilities and design flaws in smart contracts or underlying infrastructure could quickly propagate and impact multiple participants. (AMB Crypto)

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