
IMF highlights stablecoin risks in fixed exchange rate economies
The International Monetary Fund (IMF) has published a new working paper warning that dollar stablecoins could increase access to foreign currency in countries with tightly controlled exchange rates, while also raising the risk of rapid currency outflows during times of crisis. Stablecoins and exchange rate dynamics The research, written by IMF economist Brandon Joel Tan, examines how stablecoins—cryptocurrencies pegged to the US dollar or other fiat currencies—are affecting parallel foreign-exchange (FX) markets in economies where official access to dollars is restricted. Tan developed a model demonstrating that stablecoins offer an alternative source of dollars to individuals and businesses unable to…








