Overview
- In a 56‑page report titled “Understanding Stablecoins,” the IMF outlines a coordinated regime built on “same activity, same risk, same regulation,” strict reserve and redemption rules, granular disclosures, AML/CFT enforcement, and cross‑border supervisory colleges.
- The Fund warns that widespread use of foreign‑currency stablecoins can drive currency substitution in weaker economies by routing payments through smartphones and unhosted wallets, eroding monetary control.
- Stablecoin capitalization now exceeds $300 billion with roughly 97% pegged to the U.S. dollar; USDT is about $185 billion and USDC roughly $78 billion, with reserves heavily concentrated in short‑term U.S. Treasuries (~75% for USDT, ~40% for USDC), raising fire‑sale spillover risks.
- IMF data show cross‑border stablecoin flows have overtaken Bitcoin and Ethereum in 2025, after facilitating an estimated $23 trillion in trading in 2024, with Asia leading usage and rapid growth across Africa, Latin America, and the Middle East.
- Global authorities such as the ECB, Bank of England, and People’s Bank of China have flagged similar risks, while industry figures counter that stablecoins’ payment efficiency and financial‑access gains should be preserved under clear rules.