IMF warns of stablecoins replacing fiat currencies in high-inflation countries
The International Monetary Fund (IMF) warns that the rapid growth of stablecoins and their convenience for international transfers pose a risk of displacing fiat currencies, especially in vulnerable economies experiencing high inflation. This trend could weaken central bank control, complicate monetary policy, and accelerate capital outflows.
Source Incrypyted
The IMF also highlights liquidity, governance, and banking sector risks associated with stablecoins. However, the Fund acknowledges that stablecoins will remain an integral part of the financial system, and international regulatory coordination is key to mitigating these risks.
Looking ahead, the IMF emphasizes the need to develop effective standards and control mechanisms to safeguard the global financial system from potential adverse effects arising from the widespread adoption of stablecoins.
