PANews reported on December 5th that a new report from the International Monetary Fund (IMF), titled "Understanding Stablecoins," indicates that dollar-dominated stablecoins are rapidly penetrating emerging markets and developing economies, potentially weakening central banks' control over domestic liquidity and interest rates. The report points out that stablecoins can quickly enter the market via mobile phones and the internet, especially in the absence of unhosted wallets, making them more prone to "currency substitution," weakening the use of domestic currencies, and affecting the transmission of central bank monetary policy and seigniorage revenue. The IMF recommends that countries establish legal frameworks to prevent stablecoins from acquiring "legal tender" or "official currency" status, thereby safeguarding financial sovereignty. Currently, 97% of the total market capitalization of stablecoins is pegged to the US dollar, with only a small percentage linked to the euro or Japanese yen. The report also emphasizes the significant increase in the use of stablecoins in cross-border payments and in countries with high inflation, particularly in Africa, the Middle East, and Latin America.PANews reported on December 5th that a new report from the International Monetary Fund (IMF), titled "Understanding Stablecoins," indicates that dollar-dominated stablecoins are rapidly penetrating emerging markets and developing economies, potentially weakening central banks' control over domestic liquidity and interest rates. The report points out that stablecoins can quickly enter the market via mobile phones and the internet, especially in the absence of unhosted wallets, making them more prone to "currency substitution," weakening the use of domestic currencies, and affecting the transmission of central bank monetary policy and seigniorage revenue. The IMF recommends that countries establish legal frameworks to prevent stablecoins from acquiring "legal tender" or "official currency" status, thereby safeguarding financial sovereignty. Currently, 97% of the total market capitalization of stablecoins is pegged to the US dollar, with only a small percentage linked to the euro or Japanese yen. The report also emphasizes the significant increase in the use of stablecoins in cross-border payments and in countries with high inflation, particularly in Africa, the Middle East, and Latin America.