IMF Paper Warns Dollar Stablecoins Can Amplify Currency Runs

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An IMF working paper found dollar stablecoins can raise average crisis exposure from 3.9% to 7.4% in economies defending overvalued fixed exchange rates. IMF researcher Brandon Joel Tan said stablecoins can improve welfare in calm periods but deepen crisis risk when a peg is badly misaligned. IMF working papers reflect the author’s research, not the institution’s official position.
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