IMF: Stablecoins Could Accelerate Currency Substitution, Weakening Central Bank Control
2025-12-05 10:22:11
Stablecoins could accelerate currency substitution in countries with weak monetary systems, weakening central banks' control over capital flows, the international monetary fund warned on Thursday. The rise of dollar-backed stablecoins and their ease of cross-border use could prompt people and businesses in economically unstable regions to prefer dollar stablecoins over local currencies, the international monetary fund said.
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