The International Monetary Fund has stated that stablecoins could accelerate currency substitution in countries with weak monetary systems, potentially undermining central banks' control over capital flows.
The rapid rise in popularity of dollar-denominated stablecoins, coupled with their ease of cross-border use, could encourage households and businesses to abandon local currencies, especially in conditions of high inflation or low confidence.
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The International Monetary Fund has stated that stablecoins could accelerate currency substitution in countries with weak monetary systems, potentially undermining central banks' control over capital flows.
The rapid rise in popularity of dollar-denominated stablecoins, coupled with their ease of cross-border use, could encourage households and businesses to abandon local currencies, especially in conditions of high inflation or low confidence.