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IMF Flags Stablecoin Growth as Threat to Monetary Stability in Vulnerable Economies
IMF Flags Stablecoin Growth as Threat to Monetary Stability in Vulnerable Economies
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BTCCSquare news:
The International Monetary Fund has issued a stark warning about the rapid expansion of stablecoins, particularly those pegged to the U.S. dollar. According to its latest report, these digital assets could undermine monetary sovereignty in economies already grappling with inflationary pressures or institutional distrust.
Dollar-linked stablecoins are creating de facto currency substitution in emerging markets, the IMF noted. This trend risks exacerbating capital flight and reducing the effectiveness of domestic monetary policy—a dangerous scenario for nations with fragile financial systems.
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