Amid growing international attention to stablecoins, the International Monetary Fund (IMF) has released a 56-page report detailing what it sees as the main risks of their adoption.
The report draws parallels with claims by many other central banks and international financial organizations regarding the threat that stablecoins pose to government monetary control, ultimately making the case for central bank digital currencies (CBDCs).
“Currency substitution facilitated by the adoption of stablecoins would impact monetary sovereignty, the ability of a country to exercise full control over its own currency and monetary policy,” says the report published on December 5. “Central bank money is the most fundamental, liquid and resilient form of money, and it should continue to play its role.”
Gate CBO’s View Kevin Lee shared a more conciliatory view with CoinDesk: “While central banks are rightly focused on stability, we believe the ‘substitution risk’ narrative misses the broader picture. Private stablecoins and future CBDCs can coexist.”
In line with recent reports from the European Central Bank (ECB) and the Bank for International Settlements (BIS), the IMF said that “in certain circumstances, such as fire sales,” “central banks may be forced to intervene,” thereby threatening financial stability.
In this regard, Erbil Karaman, co-founder of Human Finance, whose payment network has processed more than $8 billion in stablecoin transactions, told CoinDesk: “The benefits of stablecoins far outweigh the concerns. The report fails to recognize that the majority of people live in very unstable fiat economies.”
“Centralized policymaking and centralized financial systems have failed these people for decades, which is why they are mass adopting stablecoins and breaking free,” he added.
The IMF insists the crypto industry lacks controls and regulatory compliance, making it vulnerable to illegal transactions.
“Stablecoins could also be exploited for illicit purposes such as money laundering and terrorist financing, due to their pseudonymity, low transaction costs and ease across borders,” the IMF added.
The same argument could be made for the US dollar. The Treasury released a report in 2024 stating that “the U.S. dollar remains a popular method for transporting and laundering illicit proceeds both within and outside the United States.”
Ricardo Salinas Pliego, influential billionaire founder of Mexico’s Salinas Group, said he sees all official anti-crypto campaigns as clear indications of fear.
“The banks, the establishment, are scared, because they’re going to lose the power and the money that they’ve had for so many centuries. And that’s what this whole campaign against crypto and bitcoin is about,” he said in a recent interview with Kitco News.
The IMF report admits that the challenge stablecoins pose to government and institutional control of money has everyone on guard. “In this sense, the presence of stablecoins could also be seen as an element of competition incentivizing governments to pursue their policies, in order to avoid the loss of monetary authority.”
Kraken co-CEO Arjun Sethi stated his view in October: “This is the real story… The power to issue and control money is moving away from institutions and toward open systems that everyone can rely on.
