With over $300B in circulation and 97% pegged to the dollar, stablecoins are now big enough to move bond markets and weaken national currencies and the IMF just published the manual on how governments should respond.
When the International Monetary Fund releases a 56-page framework on stablecoins, it is not speaking to crypto enthusiasts. It is speaking to finance ministers, central bank governors, and policymakers responsible for the stability of national currencies.
And the message is clear: stablecoins have outgrown the category of “payments innovation.” They are now a macro-financial force capable of shifting liquidity, weakening currencies, and reshaping how money moves across borders.
IMF’s core warning revolves around monetary substitution. The Fund cautions that in countries with fragile currencies, stablecoins can quickly become a preferred store of value and medium of exchange. This weakens a central bank’s ability to manage liquidity, interest-rate transmission, credit conditions and capital flow volatility.
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