With growing global scrutiny on stablecoins, the International Monetary Fund (IMF) has published a 56-page report outlining the principal risks associated with their use.
The document draws comparisons to concerns raised by various central banks and international financial institutions regarding the risks stablecoins pose to state monetary control, ultimately advocating for Central Bank Digital Currencies (CBDC).
“Currency substitution enabled by stablecoin adoption would undermine monetary sovereignty, disrupting a nation’s ability to maintain full control over its currency and monetary policy,” the report from December 5 emphasized. “Central bank money is the most fundamental, liquid, and resilient form of currency, and it should continue to fulfill its function.”
Gate CBO Kevin Lee expressed a more accommodating perspective to CoinDesk: “Although central banks are understandably focused on stability, we argue that the ‘substitution risk’ narrative overlooks a broader context. Private stablecoins and upcoming CBDCs can coexist.”
In alignment with recent reports from the European Central Bank (ECB) and the Bank for International Settlements (BIS), the IMF noted that “in certain situations, such as fire sales,” “central banks might have to intervene,” posing risks to financial stability.
Erbil Karaman, co-founder of Human Finance—which has facilitated over $8 billion in stablecoin transactions—told CoinDesk: “The advantages of stablecoins significantly outweigh the risks. The report neglects to recognize that a large number of people live in highly volatile fiat economies.”
“Decentralized policymaking and financial systems have let these individuals down for decades, which is why they are increasingly adopting stablecoins to gain their freedom,” he asserted.
The IMF maintains that the cryptocurrency sector lacks oversight and regulatory adherence, which makes it susceptible to illicit activities.
“Stablecoins may also be misused for illegal activities like money laundering and terrorist financing, due to their pseudonymous nature, minimal transaction fees, and ease of cross-border transfers,” the IMF cautioned.
A similar argument applies to the U.S. dollar. The Treasury published a report in 2024 indicating, “the U.S. dollar continues to be a favored means for moving and laundering illicit funds, both domestically and internationally.”
Influential billionaire Ricardo Salinas Pliego, founder of Mexican Grupo Salinas, remarked that the official anti-crypto initiatives reflect underlying fears.
“The banks and the establishment are terrified because they risk losing the power and wealth they have held for centuries. This is the essence of the entire campaign against crypto and bitcoin,” he expressed in a recent interview with Kitco News.
The IMF’s report acknowledged that the challenge posed by stablecoins to governmental and institutional monetary control has everyone on high alert. “In this context, the existence of stablecoins can be viewed as a competitive force encouraging governments to implement policies to prevent the erosion of their monetary authority.”
Kraken co-CEO Arjun Sethi shared his perspective in October, stating, “This is the fundamental narrative … The ability to issue and manage money is shifting away from institutions and into more open systems that anyone can develop.”
