The IMF has just poured cold water on the decentralization promise of cryptocurrencie. According to the latest report, the concentration of Stablecoin issuance right in the hands of private companies is completely contrary to the core mission of Crypto.
🔹 Professor Eswar Prasad IMF argue that Stablecoin are not based on trust in code Code is Law but on trust in the issuing organization like Tether, Circle. Therefore, they are essentially the opposite of decentralization.
🔸 USD based Stablecoin $USDT , $USDC account for 99.7% of the market share ~303 billion USD, while Euro Stablecoin are only 617 million USD.
Risk: The IMF warn that this will weaken rival currencie Euro, Yen and cause capital outflow of up to $1 trillion from inflationary emerging market.
🔹 Counterclaim that user still manage their money through personal wallet Self wallet, not subject to intermediary control.
Despite the controversy, Stablecoin inflow turned positive again in December, boosted by legal clarity from the US GENIUS Act.
Stablecoin are becoming a tool to extend the soft power of the US Dollar rather than a tool for global financial liberation.
Do you think the convenience of USDT is worth the trade off of being completely dependent on centralized issuer?
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