IMF's Katz warns local-currency stablecoins could speed up dollarizationIMF First Deputy Managing Director Dan Katz (@DanKatzIMF) used a Cape Town speech today to flag a counterintuitive risk for emerging markets: launching local-currency stablecoins as a defense against dollar tokens could backfire, because on-chain conversion between the two bypasses the banks and FX dealers that capital controls were built around. Once that on-ramp exists, he argued, swapping into dollars gets harder to monitor and contr ...