IMF Warns About Risks to Financial Sovereignty from Dollar Stablecoins

The International Monetary Fund (#IMF ) has warned that the rapid and centralized growth of the dollar-based stablecoin sector, which has now exceeded $300 billion and is linked to over 97% of U.S. dollars, poses serious risks to global financial stability. The IMF's primary concern is that the widespread adoption of these dollar-based stablecoins could undermine the financial sovereignty of weak economies, weaken internal liquidity and interest rate policies, and exacerbate currency substitution and capital flow volatility in high-inflation countries. The organization also noted that the fragmentation of regulations across the U.S., Europe, and Asia is complicating global oversight, allowing issuers to exploit regulatory gaps. To address these risks, the IMF has called for international coordination and robust policies to mitigate threats to global financial stability by adjusting reserve requirements and preventing shadow banking risks.#dollar