IMF warns stablecoins could lower payment costs but increase financial risks

The International Monetary Fund (IMF) has noted that stablecoins, such as USDT and USDC, have the potential to make cross-border payments faster and cheaper by reducing reliance on traditional correspondent banking networks. These digital tokens can settle transfers in seconds or minutes, bypassing delays associated with banking hours and multiple intermediaries.

However, the IMF warns of significant risks. Managing Director Kristalina Georgieva highlighted that widespread adoption could weaken monetary control and expose emerging economies to capital-flow volatility. There is a specific concern regarding currency substitution, as approximately 98% of stablecoin value is denominated in US dollars, which could lead households and businesses to favor foreign currency over domestic options during financial stress.

While stablecoins offer efficiency gains, the IMF emphasizes that total costs involve more than just blockchain fees; users must also account for exchange charges, conversion spreads, and on- or off-ramp costs. Currently, the Financial Stability Board estimates that stablecoins accounted for less than 0.2% of cross-border payment volumes in 2025, suggesting that much of the discussion concerns future adoption rather than current dominance. The IMF has called for internationally coordinated regulation and stricter supervision of issuer reserve pools.