IMF Paper Warns Dollar Stablecoins Can Trigger Currency Crisis

A new International Monetary Fund (IMF) working paper finds dollar stablecoins can amplify currency runs in economies defending an overvalued fixed exchange rate, turning fragmented parallel-market prices into a single signal that lets households exit at once.  IMF researcher Brandon Joel Tan describes a state-dependent effect. Stablecoins raise welfare during calm periods but deepen crisis
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