The post IMF Warns USD Stablecoins May Undermine Local Economies appeared on BitcoinEthereumNews.com. Key Points: IMF warns USD-stablecoins may risk monetary sovereignty for weak currencies. Stablecoins ease shift from local currencies. Potentially increase monetary control loss. The International Monetary Fund warned on December 5th that U.S. dollar-backed stablecoins may undermine monetary sovereignty in weaker economies by facilitating currency substitution. Such stablecoins could reinforce U.S. dollar dominance, challenging central banks’ control over capital flows and potentially destabilizing local monetary systems in vulnerable regions. IMF: USD Stablecoins Threaten Monetary Sovereignty USD-backed stablecoins, especially in cross-border transactions, could erode local currencies, the IMF warns. Economies with weak monetary controls might see a preference for these digital assets over traditional money. Economists from the monetary authority emphasize transformations in currency use can undermine local sovereignty. “U.S. dollar‑backed stablecoins could accelerate currency substitution in countries with weak currencies, thereby undermining local monetary sovereignty and central banks’ control over capital flows,” according to the IMF. Severe economic effects are expected, with stablecoins possibly reducing traditional banking systems’ effectiveness, as users favor lower-friction digital transactions. The IMF stresses that dominant dollar-backed stablecoins could trigger complex shifts in capital flows, requiring careful international cooperation and regulation. According to IMF documents, minimizing risks involves implementing effective safeguards against financial stability threats. Data from CoinMarketCap shows Tether USDt (USDT) maintains a stable $1.00 price, with a market cap of 185.57 billion, making up 5.97% of the total market. 24-hour volume at $88.97 billion indicates high usage, despite an 18.72% drop. In the last three months, the coin’s price stability reflects fixed valuation. Coincu analysts indicate enhanced financial stability risks may arise as stablecoins grow in use. Regulatory challenges remain significant, as conventional scope declines against decentralized trends, sparking extensive discourse on future global economy structures. According to the IMF, the implications of these shifts could be profound, leading to potential instability in local… The post IMF Warns USD Stablecoins May Undermine Local Economies appeared on BitcoinEthereumNews.com. Key Points: IMF warns USD-stablecoins may risk monetary sovereignty for weak currencies. Stablecoins ease shift from local currencies. Potentially increase monetary control loss. The International Monetary Fund warned on December 5th that U.S. dollar-backed stablecoins may undermine monetary sovereignty in weaker economies by facilitating currency substitution. Such stablecoins could reinforce U.S. dollar dominance, challenging central banks’ control over capital flows and potentially destabilizing local monetary systems in vulnerable regions. IMF: USD Stablecoins Threaten Monetary Sovereignty USD-backed stablecoins, especially in cross-border transactions, could erode local currencies, the IMF warns. Economies with weak monetary controls might see a preference for these digital assets over traditional money. Economists from the monetary authority emphasize transformations in currency use can undermine local sovereignty. “U.S. dollar‑backed stablecoins could accelerate currency substitution in countries with weak currencies, thereby undermining local monetary sovereignty and central banks’ control over capital flows,” according to the IMF. Severe economic effects are expected, with stablecoins possibly reducing traditional banking systems’ effectiveness, as users favor lower-friction digital transactions. The IMF stresses that dominant dollar-backed stablecoins could trigger complex shifts in capital flows, requiring careful international cooperation and regulation. According to IMF documents, minimizing risks involves implementing effective safeguards against financial stability threats. Data from CoinMarketCap shows Tether USDt (USDT) maintains a stable $1.00 price, with a market cap of 185.57 billion, making up 5.97% of the total market. 24-hour volume at $88.97 billion indicates high usage, despite an 18.72% drop. In the last three months, the coin’s price stability reflects fixed valuation. Coincu analysts indicate enhanced financial stability risks may arise as stablecoins grow in use. Regulatory challenges remain significant, as conventional scope declines against decentralized trends, sparking extensive discourse on future global economy structures. According to the IMF, the implications of these shifts could be profound, leading to potential instability in local…