The post ‘Stablecoins won’t democratize finance’- IMF’s warning puts issuers in focus appeared on BitcoinEthereumNews.com. Stablecoins are going against one of crypto’s value propositions of “democratizing” finance. According to the International Monetary Fund (IMF), concentrating stablecoin issuance to top private firms would achieve the opposite of crypto’s main goal.  Source: X The IMF report by Professor Eswar Prasad added,  “Stablecoins are facilitating decentralized finance, but they are the antithesis of decentralization. They don’t rely on decentralized trust mediated by computer code but rather on trust in the institutions that issue them.” U.S. dollar-backed stablecoins vs. others For Prof. Prasad, stablecoins could reinforce the current international monetary system, thereby boosting the dominance of dollar-backed stablecoins.  As of the time of writing, US dollar-based stablecoins, including Tether’s USDT and Circle’s USDC, collectively command over $303 billion worth of the market supply, or 99.7%.  Source: Artemis Euro-based stablecoins have been growing steadily, currently reaching $617 million. If this momentum continues, they could potentially hit $1 billion by 2026. However, the dominance of U.S. dollar stablecoins might weaken rival currencies such as the Euro and yen, according to Prasad.  Additionally, developing countries with highly inflationary currencies may face significant capital outflows. This occurs as citizens seek more stable and robust alternatives. Standard Chartered estimated the outflows could hit $1 trillion from emerging markets into stablecoins.  However, the Eurozone and China are already pushing for their own versions of digital currencies to protect themselves from U.S. dollar dominance.  However, Noritaka Okabe, CEO of JPYC Co., disagreed with the IMF’s “issuer control” statement. For context, JPYC Co. is Japan’s first regulated yen-based stablecoin for payments and DeFi usage. Okabe said that users directly manage funds via “self-wallets” without intermediary control.  Source: X Stablecoin inflows recover The stablecoin sector has emerged as a breakout use case for cryptocurrency, particularly for faster and more reliable cross-border payments. In July, the U.S government passed… The post ‘Stablecoins won’t democratize finance’- IMF’s warning puts issuers in focus appeared on BitcoinEthereumNews.com. Stablecoins are going against one of crypto’s value propositions of “democratizing” finance. According to the International Monetary Fund (IMF), concentrating stablecoin issuance to top private firms would achieve the opposite of crypto’s main goal.  Source: X The IMF report by Professor Eswar Prasad added,  “Stablecoins are facilitating decentralized finance, but they are the antithesis of decentralization. They don’t rely on decentralized trust mediated by computer code but rather on trust in the institutions that issue them.” U.S. dollar-backed stablecoins vs. others For Prof. Prasad, stablecoins could reinforce the current international monetary system, thereby boosting the dominance of dollar-backed stablecoins.  As of the time of writing, US dollar-based stablecoins, including Tether’s USDT and Circle’s USDC, collectively command over $303 billion worth of the market supply, or 99.7%.  Source: Artemis Euro-based stablecoins have been growing steadily, currently reaching $617 million. If this momentum continues, they could potentially hit $1 billion by 2026. However, the dominance of U.S. dollar stablecoins might weaken rival currencies such as the Euro and yen, according to Prasad.  Additionally, developing countries with highly inflationary currencies may face significant capital outflows. This occurs as citizens seek more stable and robust alternatives. Standard Chartered estimated the outflows could hit $1 trillion from emerging markets into stablecoins.  However, the Eurozone and China are already pushing for their own versions of digital currencies to protect themselves from U.S. dollar dominance.  However, Noritaka Okabe, CEO of JPYC Co., disagreed with the IMF’s “issuer control” statement. For context, JPYC Co. is Japan’s first regulated yen-based stablecoin for payments and DeFi usage. Okabe said that users directly manage funds via “self-wallets” without intermediary control.  Source: X Stablecoin inflows recover The stablecoin sector has emerged as a breakout use case for cryptocurrency, particularly for faster and more reliable cross-border payments. In July, the U.S government passed…