IMF warns local stablecoins may boost dollar use

• The IMF said local stablecoins could increase the use of the US dollar in some economies.
• The organisation warned that dollar-linked digital assets may weaken demand for local currencies.
• The IMF said policymakers should monitor stablecoin adoption and financial risks.

The International Monetary Fund said local stablecoins could increase the use of the US dollar in some economies.

The IMF said dollar-linked stablecoins could make it easier for people and businesses to use dollar-based assets.

The organisation said wider stablecoin adoption could reduce demand for some local currencies.

The IMF said countries should monitor how stablecoins affect payments, savings, and financial stability.

The organisation said policymakers may need stronger regulatory frameworks for stablecoin issuers and digital asset markets.

Stablecoins are digital tokens that are usually linked to the value of a traditional currency, such as the US dollar.

The IMF said the impact of stablecoins will depend on regulation, market adoption, and local economic conditions.