Amid an intensifying international focus on stablecoins, the International Monetary Fund (IMF) has released a 56-page report detailing what it sees as the key risks surrounding their adoption. The report draws parallels from the claims many other central banks and international financial organizations make regarding the threat stablecoins represent to governmental monetary control, to ultimately argue in favor of Central Bank Digital Currencies (CBDC). “Currency substitution facilitated by stablecoin ado ...

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 ...

Core Viewpoint - France's National Assembly has adopted a resolution opposing the European Central Bank's proposed digital euro, advocating instead for Bitcoin and euro-denominated stablecoins as alternatives [1][2]. Group 1: Legislative Actions - The resolution was introduced on October 22, 2025, by Éric Ciotti and members of the Union of the Right for the Republic (UDR), urging the French government to reject the European Commission's draft regulation for a digital euro [2]. - The proposal emphasizes the need for greater national investment in crypto-assets and support for euro-based stablecoins [2]. Group 2: Concerns Over Central Bank Digital Currencies (CBDCs) - The document titled "Proposal for a European Resolution Calling for Support for the Transformation of the Monetary System" argues that CBDCs threaten privacy and economic freedom [3]. - Lawmakers expressed concerns that a centrally managed digital euro could allow authorities to track and freeze citizens' funds, drawing comparisons to China's digital yuan [4]. Group 3: Economic Implications - The resolution warns that a digital euro could destabilize Europe's banking system by enabling users to transfer deposits directly to the ECB, potentially leading to a bank run [5]. - It argues that such concentration of financial power within a single institution would be detrimental to economic freedom [5]. Group 4: Proposed Initiatives - The French proposal outlines a pro-crypto agenda focusing on three areas: establishing a national Bitcoin reserve, promoting euro-denominated stablecoins, and supporting the domestic crypto industry [5]. - The plan includes creating a public administrative body to manage a strategic Bitcoin reserve equivalent to 2% of the total Bitcoin supply, approximately 420,000 BTC, to be accumulated over seven to eight years [6].

Core Viewpoint - The People's Bank of China (PBoC) has issued a strong warning against stablecoins, labeling them a threat to global financial stability and committing to intensifying its crackdown on domestic cryptocurrency activities [1][2]. Group 1: Stablecoins and Financial Stability - Pan Gongsheng, governor of the PBoC, stated that stablecoins, which are digital assets pegged to fiat currencies, have introduced new vulnerabilities into the global financial system and could undermine the monetary sovereignty of smaller economies [2][5]. - He emphasized that stablecoins have exacerbated weaknesses in the global financial system, particularly through their involvement in market speculation and non-compliance with essential regulations such as customer identification and anti-money laundering (AML) standards [3][4]. - The PBoC's measures against cryptocurrency activities have been described as "effective," maintaining a zero-tolerance policy towards private digital currencies since 2017 due to financial risks and potential consumer harm [4]. Group 2: Regulatory Actions and Future Monitoring - The central bank plans to continue collaborating with law enforcement to combat cryptocurrency operations and speculative activities within mainland China [3]. - Pan indicated that the PBoC would closely monitor the development of stablecoins in overseas markets, reflecting concerns about how foreign stablecoin growth could impact China's financial stability [5]. - The total market capitalization of stablecoins has reached approximately $308 billion, with Tether (USDT) and USD Coin (USDC) making up nearly 87% of the supply, highlighting the significant presence of these assets in the market [6].