The post IMF Report 2025 Warns How Stablecoins Could Damage National Currencies appeared first on Coinpedia Fintech News
The International Monetary Fund (IMF) has issued a strong warning about the growing risks stablecoins may create for national currencies, especially in countries that already have weak financial systems.
The IMF noted that 97% of stablecoins are tied to the US dollar and said governments should not allow digital assets to become legal tender.
Stablecoins Could Replace Weak Currencies
According to the recently released departmental paper, the IMF identifies stablecoins as a significant threat to central bank control, particularly in economies with weaker currencies.Â
Since stablecoins are linked to strong currencies like the US dollar, people may slowly stop using their national money, which could hurt the country’s ability to control inflation or interest rates.
The concern is not new. In November, the European Central Bank also warned that dollar-based stablecoins could drain money from banks and reduce their financial stability.
Today, the stablecoin market is huge, worth about $316 billion in 2025. Most of it is controlled by USDT and USDC, which together hold over 90% of the market. Even euro- and yen-based stablecoins are growing, worth $675 million and $15 million, respectively.
Why Poorer Countries Are Most at Risk
Some countries with very high inflation are already turning to stablecoins to protect their money. For example,
- Argentina’s inflation went above 140% in 2023
- Turkey has inflation above 60%
Because of this, people are using stablecoins as a safer option, and transactions in these countries have increased by more than 300% in a year.
The IMF also explains that stablecoins are easy to access. Anyone with a smartphone can get them. Today, more than 420 million people around the world use crypto wallets, and stablecoins make up nearly 25% of all crypto transactions.
What the IMF Wants Countries to Do
The IMF says countries need stricter and clearer rules for stablecoins. Right now, only 45 countries have proper regulations, which leaves many gaps and increases risk.
To protect their own currencies, the IMF suggests two main steps. First, countries should strengthen their local currency by following strong economic policies. Second, they should set clear rules for stablecoins so these digital assets don’t end up being treated like official money.
The IMF also warns that digital assets should not become legal tender, because that would weaken a country’s ability to control its financial system.
