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The Risk of Stablecoins in Emerging Markets
$USDC 🚨 IMF Alert
The International Monetary Fund (IMF) has issued a new important warning in its December 2025 report.
Here is a summary of the key points and the current debate:
🔴 The IMF Warning: Threat to Monetary Sovereignty
The IMF fears that stablecoins linked to the US dollar (such as USDT and USDC) pose a significant risk to emerging markets (EM) and developing economies. The main risks are:
- Currency Substitution (Digital Dollarization): In countries with high inflation and volatile fiat currencies, citizens may quickly abandon the local currency in favor of USD-denominated stablecoins. This would undermine central banks' control over monetary policy and interest rates.
The International Monetary Fund (IMF) has issued a new important warning in its December 2025 report.
Here is a summary of the key points and the current debate:
🔴 The IMF Warning: Threat to Monetary Sovereignty
The IMF fears that stablecoins linked to the US dollar (such as USDT and USDC) pose a significant risk to emerging markets (EM) and developing economies. The main risks are:
- Currency Substitution (Digital Dollarization): In countries with high inflation and volatile fiat currencies, citizens may quickly abandon the local currency in favor of USD-denominated stablecoins. This would undermine central banks' control over monetary policy and interest rates.
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