TechFlow, December 5 — According to the International Monetary Fund's (IMF) latest report "Understanding Stablecoins," stablecoin issuance has doubled over the past two years, reaching approximately $300 billion, though it accounts for only 7% of the total market capitalization of crypto assets. The report notes that stablecoins are primarily used for crypto transaction settlements, but their application in cross-border payments is growing rapidly.
While stablecoins can improve payment efficiency and reduce cross-border transaction costs, the IMF warns of risks such as value volatility, impaired market functioning, bank disintermediation, and currency substitution—risks that are particularly pronounced for emerging market and developing economies.
Global regulatory frameworks for stablecoins are currently taking shape, but implementation varies across countries, creating risks of regulatory arbitrage. The IMF calls for enhanced international cooperation to ensure that the potential benefits of stablecoins are realized while effectively managing associated risks.
