Stablecoin Adoption Could Stifle Central Bank Control, IMF Warns

Stablecoins have the potential to broaden individuals’ access to financial services, but that may come at the cost of central banks, according to the International Monetary Fund. In a 56-page report published on Thursday, the international organization identified “currency substitution” as a potential risk that stablecoins pose, describing the dynamic as something that could incrementally erode the financial sovereignty of various nations. Historically, if an individual wanted access to the greenback, they ...