IMF flags Brazil's stablecoin growth

• The International Monetary Fund (IMF) said stablecoin activity in Brazil now exceeds some traditional capital flows.
• The IMF said digital dollar-backed tokens are changing how money moves across borders.
• The report said regulators should monitor the risks as stablecoin use continues to grow.

The International Monetary Fund (IMF) said stablecoin activity in Brazil has grown faster than some traditional cross-border capital flows.

The IMF said many people and businesses are using stablecoins to move money across borders more quickly and at lower cost.

The report said stablecoins are becoming a larger part of Brazil's financial system as digital asset adoption continues to increase.

The IMF said stronger oversight could help reduce risks linked to stablecoin transactions while supporting financial stability.

The report said policymakers should monitor the growing use of stablecoins as digital payments become more common.

The IMF said stablecoins are reshaping cross-border payments and could play a bigger role in the global financial system.