• The International Monetary Fund stated that “many stablecoins do not have a true independence from the U.S. dollar and could become private dollar systems.”
• The IMF warned that the “global adoption of dollar-linked stablecoins could undermine central banks’ monetary control.”
The International Monetary Fund released a report that questioned the independence of stablecoins from the traditional fiat system. The IMF stated that nearly all major stablecoins are still tied to the U.S. dollar and that they rely on short-term dollar instruments. Many of the stablecoin issuers hold large amounts of U.S. Treasury bills to collateralize their stablecoin liabilities. This indicates that stablecoins are simply dollar channels and do not displace dollars in the global financial system
Stablecoin Growth Concerns
The IMF stated that the stablecoin phenomenon could develop into a “private dollar warehouse” system. It stated that stablecoins could develop into a system that distributes dollars in a manner that is not part of the traditional banking system. The IMF expressed that this could make it more difficult for central banks to manage the money supply. In nations with weak currencies, the use of stablecoins could substitute for the local currency.
The current market size of stablecoins has surpassed the total value of more than hundreds of billions of US dollars. The leading stablecoins pegged to the US dollar are USDC and USDT. The IMF identified the cross-border transactions of stablecoins as an increasing capital flow that moves beyond the regulated framework
This trend may affect the measures of capital controls and foreign exchange interventions. The IMF’s analysts stated that the private emission of stablecoins may lead to the fragmentation of payment systems without interoperability. They further clarified that the use of stablecoins that operate outside the regulatory framework may increase the risks of exchange rate volatility.
Implications for Monetary Policy and Financial Stability
Traditionally, central banks use changes in the policy rate and reserves to control inflation and liquidity. The adoption of stablecoins could weaken the pass-through effect of these tools. The use of dollar-linked stablecoins in vulnerable markets could lead to a reduction in the use of local currencies. The IMF study showed that stablecoins do not have deposit insurance or a lender of last resort. This could increase financial instability during times of stress
The IMF called for international regulatory cooperation to ensure a common set of rules. A common set of rules could help to close the innovation gap and ensure financial system stability. There may be a need for closer supervision to ensure that stablecoin flows are properly tracked.
Highlighted Crypto News:
Changpeng Zhao Warns On-Chain Transparency Hinders Business Crypto Payments
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Hassett: The Strait of Hormuz could be opened within two months, and the Federal Reserve still has room to cut rates
Gate News message: On April 10, U.S. National Economic Council Director of the White House, Hassett, said the Strait of Hormuz could be reopened within two months. In addition, Hassett said the Federal Reserve still has room to cut interest rates, and this outlook will be very solid.
GateNews12h ago
Reuters: The market is pricing in expectations that the U.S. Federal Reserve will keep interest rates unchanged throughout 2026
Gate News, April 10, according to Reuters, the market continues to price in expectations that the Federal Reserve will keep interest rates unchanged throughout 2026.
GateNews12h ago
CME Data: The probability that the Federal Reserve will keep interest rates unchanged in April is 98.4%
Gate News message: On April 10, according to CME "FedWatch" data, before the CPI data is released, the probability that the Federal Reserve will raise rates by 25 basis points in April is 1.6%, while the probability of keeping rates unchanged is 98.4%. Looking ahead to June, the probability of cumulative rate cuts of 25 basis points is 1.5%, the probability of keeping rates unchanged is 96.8%, and the probability of cumulative rate hikes of 25 basis points is 1.7%.
GateNews13h ago
Federal Reserve’s Daly: If the Iran conflict is resolved and oil prices fall, a rate cut “is not out of the question”
Gate News, on April 10, Daly, the president of the Federal Reserve Bank of San Francisco, said that if the Iran conflict is resolved quickly and oil prices fall, a rate cut is “not impossible.” She also noted that the likelihood of a rate hike is lower than the likelihood of cutting rates or keeping interest rates unchanged.
GateNews13h ago
Banking firms such as Australia and New Zealand Banking Group (ANZ) and Goldman Sachs maintain a bullish outlook for gold, with a year-end target price as high as $5,800
Banks such as Australia and New Zealand Banking Group (ANZ) and investment banks like Goldman Sachs predict that gold may rebound in the long term, mainly driven by central bank demand, geopolitical uncertainty, and expectations that the Federal Reserve will cut interest rates. ANZ expects the gold price to reach $5,800 by year-end, while Goldman Sachs maintains a $5,400 outlook, saying that central bank gold purchases will be a support factor.
GateNews13h ago
A certain CEX has been approved for a Federal Reserve master account, raising concerns about systemic risk and transparency
A cryptocurrency exchange became the first CEX to be approved for a Federal Reserve master account, but the account is restricted—access is limited to the Fedwire payment system, and it cannot earn interest. This move has sparked concerns about financial risk and transparency in the U.S., and regulatory experts warn it could affect financial stability. The exchange said it is complying with anti–money laundering requirements.
GateNews14h ago
