IMF Report Flags Stablecoin Dangers, Faces Expert Backlash Over Crypto Regulation

A recent report from the International Monetary Fund (IMF) highlighting potential financial stability risks posed by stablecoins has drawn significant criticism from cryptocurrency experts. The IMF's analysis, part of its Global Financial Stability Report, argues that the rapid growth of stablecoins like USDT and USDC could lead to market disruptions and contagion in times of stress. Experts counter that the report overlooks the benefits of blockchain-based payment systems and employs an overly traditional regulatory framework. They emphasize that well-designed stablecoins can enhance payment efficiency and financial inclusion. This debate underscores the ongoing tension between established financial institutions and the evolving digital asset ecosystem, with significant implications for future crypto regulations worldwide.