IMF: Stablecoins may accelerate currency substitution and weaken central bank control

Jinse Finance reported that the International Monetary Fund warned on Thursday that stablecoins could accelerate currency substitution in countries with weak monetary systems, thereby weakening central banks' control over capital flows. The International Monetary Fund stated that the rise of dollar-backed stablecoins and their convenient cross-border use may prompt people and businesses in economically unstable regions to prefer using dollar stablecoins over local currencies.