IMF Warns Stablecoins Pose Financial Stability Risks as Cross-Border Flows Surpass Bitcoin and Ethereum

The International Monetary Fund (IMF) has issued a sharp warning following data showing that cross-border stablecoin flows have surpassed those of Bitcoin and Ethereum for the first time, reaching new 2025 highs. Stablecoins, dominated by Tether (USDT) and USD Coin (USDC), now represent about 7% of all crypto assets, with trading volumes reaching $23 trillion in 2024. The IMF paper highlights that this structural shift means stablecoins are a dominant driver of global crypto activity, posing risks like accelerating currency substitution and disrupting capital flows, especially in emerging markets.

Most major stablecoins are backed by US Treasuries, offering higher yields than local bank accounts, which encourages consumers in high-inflation economies to shift deposits away from local currencies. This dynamic strengthens the US dollar's global influence but weakens the monetary autonomy of other nations. The IMF notes that while stablecoins aid financial inclusion, they may also concentrate financial power and amplify volatility during market stress events.

The primary regulatory concern is fragmentation, as stablecoins move across borders faster than national policies can adapt, leaving vulnerable economies exposed to sudden shifts in demand for digital dollars. This aligns with other reports suggesting stablecoins could drain significant deposits from emerging market banks. The IMF is expected to release a policy roadmap in early 2026 to address reserve transparency and cross-border supervision.

(Source：BeInCrypto)