IMF Warns Stablecoins Ease Dollarization, Undermine Capital Controls

For policymakers, the takeaway is that issuing a domestic stablecoin alone may not meaningfully reduce demand for dollar-denominated digital assets.

Katz also challenged assumptions about stablecoin adoption by highlighting the gap between total transaction volume and genuine economic usage. According to figures cited from the Bank for International Settlements, stablecoins processed more than $30 trillion in transaction volume during 2025. Only around $390 billion represented real-world payments involving businesses or consumers. Headline transaction volume can create the impression that stablecoins have already become a mainstream payment network, when much of the activity still circulates within the digital asset ecosystem.

The IMF's broader recommendation is not to prohibit stablecoins but to regulate the infrastructure connecting blockchain networks with traditional finance. Katz said authorities should prioritize oversight of the gateways between crypto markets and the conventional financial system: fiat on- and off-ramps, custodial services, and the commercial banks that settle with crypto firms. Monitoring those entry points may prove more effective than attempting to restrict blockchain transactions themselves, particularly as decentralized markets continue expanding across jurisdictions.

Many emerging economies are simultaneously evaluating domestic stablecoins, central bank digital currencies, and updated digital asset legislation. The IMF's latest assessment suggests policymakers may need to reconsider whether locally issued stablecoins actually support monetary sovereignty or unintentionally encourage greater use of U.S. dollar digital assets.

Future regulatory discussions are likely to focus less on whether stablecoins should exist and more on how digital currency ecosystems interact with capital controls, foreign exchange rules, and cross-border payment infrastructure. That debate could become increasingly significant as governments modernize payment systems while stablecoin adoption expands globally. The IMF plans to publish further analysis on the intersection of stablecoins and capital-flow management ahead of its October annual meetings in Washington.