⚠️ IMF Warns Stablecoins Could Pressure EM Currencies But Experts Say Risks Remain Limited
The IMF’s December 2025 report cautions that USD-pegged stablecoins could fuel currency substitution and capital outflows in vulnerable emerging markets, potentially weakening local currencies and undermining central bank control. The report highlights how stablecoins can bypass traditional capital flow measures, offering a seamless channel for moving dollars across borders.
However, analysts say stablecoins are still too small to trigger systemic shocks. Despite rapid growth to nearly $300B, most stablecoin activity remains tied to crypto trading, not macro-level capital flight. Experts emphasize that traditional USD markets spanning tens of trillions still dwarf stablecoins, limiting their real world impact.
For now, stablecoins may accelerate outflows in niche cases, but they’re far from capable of driving full-scale EM currency runs.
