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IMF Warns Stablecoins Threaten Emerging Markets' Monetary Sovereignty

IMF economists say stablecoin adoption can weaken central bank control and call for robust legal frameworks and unified oversight to manage risks.

26h agoDec 5, 2025, 12:31 AMNewsroom AI

An IMF report warned that widespread stablecoin use could undermine the monetary sovereignty of emerging-market currencies and recommended that countries put robust legal and regulatory frameworks in place to preserve monetary control [1].

The IMF also highlighted that while stablecoins may broaden individuals’ access to financial services, that adoption could come at the expense of central bank control over monetary policy and the financial system, a point emphasized in coverage of the report [2].

IMF economists called for unified oversight of stablecoins as risks escalate, urging coordinated regulatory responses to address cross-border and systemic concerns raised by the technology [3].

The IMF’s findings urge emerging economies and international regulators to strengthen legal frameworks and pursue coordinated oversight to mitigate stablecoins’ potential to disrupt monetary policy and financial stability [1][2][3].

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