IMF: Stablecoins Could Accelerate Currency Substitution, Weakening Central Bank Control

BlockBeats News, December 5th, the International Monetary Fund warned on Thursday that stablecoins could accelerate the currency substitution of weak currency systems in countries, thereby weakening central banks' control over capital flows.

The International Monetary Fund stated that the rise of USD-backed stablecoins and their convenient cross-border use could prompt individuals and businesses in economically unstable regions to prefer using USD stablecoins over the local currency.