An International Monetary Fund (IMF) working paper says dollar stablecoins can amplify currency runs in economies defending an overvalued fixed exchange rate by turning fragmented parallel-market prices into a single, public signal that can coordinate exits. According to BeInCrypto, IMF researcher Brandon Joel Tan finds stablecoins can raise welfare in calm periods but deepen crisis risk once a peg becomes badly misaligned, citing Bolivia after its central bank lifted restrictions on virtual-asset transactions in June 2024.
Tan’s simulations show average crisis exposure rising from 3.9% in a cash-only economy to 7.4% in a full stablecoin economy, and from 4.8% to 12.9% at the most severe misalignment.
IMF Paper Warns Dollar Stablecoins Can Amplify Currency Runs Under Fixed Pegs
2026-07-12 01:56:25
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