The International Monetary Fund urged internationally coordinated regulation to respond to the spread of stablecoins, warning of higher risks of currency substitution and unstable capital flows in emerging markets. IMF Managing Director Kristalina Georgieva said stablecoins and tokenisation can make cross-border payments faster and cheaper but require global regulatory coordination. She warned stablecoins could weaken banks’ intermediation, be used for tax evasion and undermine capital controls, and said central banks should maintain sound banking systems and bolster foreign reserves.