The IMF warned by the use of Stablecoins: what factors could destabilize the international financial system

The report highlights a job of Hélène Reyprofessor at the London Business School and president of the European Economic Association, which analyzes the phenomenon. There it is highlighted that these digital currencies – surrounded by foreign currencies or sovereign bonds— They managed to attract millions of users in a very short time, allowing continuous and low -cost cross -border transactions. In addition, it emphasizes that the new norms recently sanctioned in the United States – among them the Genius Actwhich regulates the stablecoins – could further boost their global expansion.

According to Rey, this technology opens a huge space for innovation in payments, but warns that it will be key to reach a balance between benefits and risksthrough a regulation that protects consumers and investors and limits side effects in the system.

What benefits (and risks) has the use of stablecoins

On the positive side, the potential of the stablecoins is not exhausted in their efficiency as a means of payment. The expert points out that its use introduces unpublished functionalities, such as Assets programmability and the fluid integration of capital flows through borders and asset classes.

But the analysis also puts on the table high impact risks. He IMP And King warns that the proliferation of private money emitters – who compete for the lord, that is, the gain they obtain for issuing an accepted currency without cost – could fragment and destabilize the international financial system, Remembering the experience of the nineteenth century, when multiple private actors issued their own money. The fiscal impact is also considerable: a massive adoption of Stablecoins could reduce the collection of governments and alter the balance of the global monetary system.

Gita Bhatt, editor chief of the magazine, warns that “in a world where Stablecoins, particularly those linked to the dollar, become a global relevant payment tool, we must prepare for substantial consequences.” Rey adds that the technological advance is transforming capital flows and the Hegemony of coins On international scale, and underlines that the integrity of the data will be decisive for financial stability.

The study also addresses the advance of the Postcuantic cryptographydesigned to resist attacks of both classic and quantum computers. While this technology progresses, uncertainty persists in the technological career: the most vulnerable monetary networks could face crisis of trust and massive capital outputs, granting a “privilege of integrity” to the safest currencies, which would see their financing cost reduced.

In which countries the use of stablocoins continues to grow

Rey emphasizes that the global possession of Stablecoins linked to the dollar already exceeds what countries such as Saudi Arabia In United States Treasury Bonds. This phenomenon reinforces the role of the US as a “world banker” and consolidates the dollar privilegebut also facilitates the privatization of lordship and the concentration of wealth in the hands of a handful of companies and individuals. This dynamic, he warns, could weaken traditional banking systems by competition for deposits and alter the transmission channels of monetary policy, complicating macroeconomic stabilization efforts.

The author also analyzes the impact of the Tokenization of assets And of the future Central Banks Digital Coins (CBDC)that could allow faster and more safe international transfers. The platforms of Decentralized Finance (Defi)he adds, they would expand access to global assets and reduce intermediation costs, although they also raise risks of fragmentation and significant regulatory challenges.

This rise of private currencies and tokenized systems, notes, will increase competition between foreign exchange and cause strong portfolio displacements between monetary networks. The possibility of programmable capital controls and specific restrictions for digital wallets anticipates a more international monetary system multipolar And, potentially, more fragile. “History shows that private currencies, when they are not backed by a state capable of raising taxes and enforcing contracts, tend to instability and runs,” says Rey.

Finally, the study alerts on tax consequences, especially for weaker economies: the lack of regulation and opacity of capital flows associated with cryptoactive facilitates tax evasion, money laundering and elusion of sanctions, eroding the tax base of many countries. In addition, the collection of data on these flows remains incipient, which hinders the supervision and response of the authorities.