TechFlow News — The International Monetary Fund (IMF) warned that central bank digital currencies (CBDCs) and stablecoins could intensify "currency substitution," where foreign currencies replace domestic ones in local transactions. Currency substitution may undermine authorities' control over domestic liquidity, reduce the stability of money demand, and potentially weaken the effectiveness of monetary policy. Without proper safeguards, the adoption of such technologies could also facilitate illicit capital flows. (Sina Finance)
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