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imf scared of dollar stablecoins?! they think the dollar will take over the world 🤯📉 #monetarypolicy #cryptocon
imf sounding the alarm on foreign stablecoins: potential loss of monetary policy control with dollar-backed stablecoins infiltrating economies, posing risks of currency substitution
Key notes: Stablecoins can rapidly penetrate economies via the internet and smartphones. If major activities shift to foreign stablecoins, central banks may lose control of domestic liquidity and interest rates. The IMF cautions that nearly all stablecoins are tied to the US dollar.
On Dec 2, 2025, the IMF released a paper warning about the impact of large foreign stablecoins on weaker economies. Stablecoins could lead to currency substitution and weaken monetary control, especially in countries with high inflation or weak institutions.
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