IMF Report: Stablecoins May Weaken Monetary Sovereignty, Recommends Establishing Legal Framework to Guard Against Substitution Risks

Techub News, the International Monetary Fund (IMF) has released a report titled "Understanding Stablecoins." The report shows that the issuance of stablecoins has doubled in the past two years, reaching approximately $300 billion, but it only accounts for 7% of the total cryptocurrency market capitalization. The report points out that stablecoins are primarily used for cryptocurrency trading settlements, but their application in cross-border payments is rapidly growing. Currently, U.S. dollar-dominated stablecoins are rapidly penetrating emerging markets and developing economies, which may weaken central banks' control over domestic liquidity and interest rates. The IMF recommends that countries establish legal frameworks to prevent stablecoins from obtaining "legal tender" or "official currency" status, thereby safeguarding financial sovereignty.