Core Insights - The International Monetary Fund (IMF) has identified stablecoins as a significant risk to financial stability in its latest report, highlighting vulnerabilities in the global economy [1][8]. Group 1: Stablecoin Risks - The IMF's 2025 financial stability report mentions stablecoins 80 times, focusing on three main threats due to their rising adoption [4]. - A potential "stablecoin run" could lead to significant market impacts, particularly if major stablecoins like USDT and USDC are forced to liquidate reserves to meet redemption demands, which could influence the overall Treasury market [5][6]. - The report indicates that while a stablecoin run may not directly affect mortgage rates or corporate borrowing costs, the continued growth of stablecoins could introduce systemic risks [6][8]. Group 2: Monetary Policy Concerns - The adoption of dollar-denominated stablecoins raises concerns about currency substitution, especially in regions with weak macroeconomic fundamentals, which could undermine monetary policy tools [9]. - Central banks in the EU and U.K. are wary of threats to their monetary sovereignty, while the issue of digital dollarization is more pressing in the Global South [7][8].