The International Monetary Fund warned that local-currency stablecoins could increase demand for dollar-linked tokens rather than reduce reliance on them. IMF First Deputy Managing Director Dan Katz said that if local and dollar stablecoins run on the same blockchain infrastructure, users could more easily move funds into digital dollars. He said on-chain currency conversion could bypass banks and money changers, reducing frictions used to monitor capital flows.

Dollar-pegged stablecoins could bypass capital controls and weaken monetary sovereignty in emerging markets, researchers at the Bank for International Settlements said. Comparing foreign-currency deposits and stablecoin inflows across more than 130 countries, they found stablecoin flows were largely unaffected by capital and foreign-exchange restrictions. The researchers said households and firms may shift into dollar tokens where local currencies are unstable or financial access is limited, reducing central banks’ policy influence.