IMF Report 2025 Warns How Stablecoins Could Damage National Currencies

The International Monetary Fund (IMF) has issued a strong warning about the growing risks stablecoins may create for national currencies, especially in countries that already have weak financial systems. 

The IMF noted that 97% of stablecoins are tied to the US dollar and said governments should not allow digital assets to become legal tender.

Stablecoins Could Replace Weak Currencies

According to the recently released departmental paper, the IMF identifies stablecoins as a significant threat to central bank control, particularly in economies with weaker currencies. 

Since stablecoins are linked to strong currencies like the US dollar, people may slowly stop using their national money, which could hurt the country’s ability to control inflation or interest rates.

The concern is not new. In November, the European Central Bank also warned that dollar-based stablecoins could drain money from banks and reduce their financial stability.

Today, the stablecoin market is huge, worth about $316 billion in 2025. Most of it is controlled by USDT and USDC, which together hold over 90% of the market. Even euro- and yen-based stablecoins are growing, worth $675 million and $15 million, respective