๐ฅ๐จ The IMF has issued a major warning about the global rise of stablecoins โ and the message is loud and clear: these digital dollar substitutes could weaken central bank power and reshape how nations control their own money.
According to the IMF, nearly 97% of all stablecoins are pegged to the U.S. dollar, creating an environment where foreign economies may increasingly rely on digital dollars instead of their local currencies. This โcurrency substitution,โ especially in cross-border payments and non-custodial wallets, poses a direct threat to monetary sovereignty. As a result, the IMF is urging strict regulations โ including banning digital assets from being used as legal tender.
Stablecoin adoption is accelerating fastest in Africa, the Middle East, and Latin America, where weak banking systems and inflation make digital dollars far more appealing than local cash.
Even U.S. Treasury Secretary Scott Bessent acknowledged that global demand for stablecoins indirectly strengthens U.S. debt markets, giving Washington an unexpected financial advantage.
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