Haciyev Reşit 
The International Monetary Fund (IMF) continues to closely monitor the rapid developments in the cryptocurrency markets. The institution has made cautious statements about digital assets in the past as well. In its latest assessment, the IMF highlighted significant risks by drawing attention to the increasing use of stablecoins. According to the IMF, the rapid growth of stable cryptocurrencies could lead to serious macroeconomic consequences in countries with weak monetary systems.
IMF: Stablecoin Usage May Accelerate Currency Substitution
In its new report titled “Understanding Stablecoins,” the IMF states that the rapid expansion of stablecoins could threaten economic stability. According to the institution, especially in countries with unstable currencies, individuals and businesses may start preferring dollar-backed stablecoins instead of local currencies. This could accelerate currency substitution, weakening central banks’ ability to control monetary policy and capital flows.
The report also notes that the ease of cross-border use of stablecoins may further reduce demand for local currencies in some countries. In such an environment, it may become increasingly difficult for central banks to guide markets using monetary policy tools.
Risks Cannot Be Solved by Regulation Alone: Strong Policies Required
According to the IMF, the risks associated with stablecoins cannot be eliminated by regulatory actions alone. The institution stresses that strong macroeconomic policies and international coordination are necessary. As the stablecoin market grows, the IMF warns that potential vulnerabilities that could threaten financial stability will also increase.
The IMF highlights the critical importance of transparency regarding reserve assets and ensuring redemption rights. Otherwise, user confidence can quickly deteriorate, and mass liquidation of reserve assets could lead to widespread market pressure.
Cross-Border Usage Effects and the Risk of Fragmentation
While the growing use of stablecoins creates new opportunities in payment systems, it also brings several dangers. The IMF states that without interoperability standards, payment systems may become fragmented, making financial flows more vulnerable. In countries with tight capital controls, the increasing use of stablecoins could allow capital movement to bypass these controls, increasing volatility. This may put additional pressure on the economies of those countries.
The IMF report states:
“Stablecoins can contribute to currency substitution, bypass capital controls and increase capital flow volatility, and fragment payment systems if interoperability is not ensured.”
Assessment
While acknowledging the potential benefits of stablecoins, the IMF underscores that these benefits come with significant macro-financial risks. According to the institution, without strong regulatory frameworks and international cooperation, the growth of the stablecoin market could place serious pressure on economic stability. A decline in user confidence or a drop in the value of reserve assets could trigger sudden sell-offs, potentially causing chain reactions across broader markets.
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