IMF warns stablecoins undermine currency control in Bolivia and Nigeria

A new IMF working paper shows that dollar‑linked stablecoins are reshaping exchange‑rate dynamics in economies with fixed or heavily managed currencies. Using Bolivia as a case study, the paper notes that after the country lifted its virtual‑asset restrictions in June 2024, activity in USDT surged twelvefold and the stablecoin’s price in bolivianos became the de‑facto reference rate, now published by the central bank.

Another IMF report highlights similar risks in Nigeria, where up to 95 % of surveyed users prefer receiving payments in stablecoins over the naira. Rapid adoption of USDT and USDC is eroding demand for the local currency and complicating monetary‑policy implementation, raising concerns about monetary sovereignty and the effectiveness of capital controls.