Catenaa, Monday, December 08, 2025- Stablecoins could push households and companies in weaker monetary systems to switch from local currency to dollar tokens, the International Monetary Fund said in a report published Thursday.
The warning centers on rapid growth in stablecoin markets and easy movement of funds across borders. Dollar-linked stablecoins may reduce the reach of central bank policy in countries with high inflation or low trust.
The IMF said currency shifts and movement of money could grow if users bypass capital controls. Payment systems could break apart if systems lack smooth connection across networks.
The group cited rising supply and volume in stablecoins including USDT and USDC. The two largest stablecoins have tripled since 2023 to a combined $260 billion with annual trading near $23 trillion.
Asia has the highest stablecoin volume. Use compared to national output is highest in parts of Africa, the Middle East and Latin America. These regions already face pressure on local currency strength. The IMF said digital tokens may increase financial access where mobile money is common. It said gains depend on clear rules and sound legal systems.
Risks include runs if holders doubt backing assets or redemption rights.
Forced selling could hit markets. Cross border movement may weaken capital controls and hide flows. Different rules in major regions create openings for rule shopping.
The IMF said global cooperation will shape stablecoin impact on money systems and data quality.
The IMF warned that fast growth in stablecoins could speed currency substitution and reduce central bank influence, especially in weak monetary systems.
