IMF Chief Says Stablecoins Could Cut Cross-Border Payment Costs but Risk Emerging-Market Currency Substitution
At the Jackson Hole symposium, IMF chief Georgieva said stablecoins and tokenization could boost global financial liquidity and make large cross-border payments cheaper and faster. She cautioned, however, that these instruments may also accelerate currency substitution, heighten capital-flow and exchange-rate volatility, and erode capital controls and monetary sovereignty. Dollar-pegged stablecoins, in her view, could strengthen the dollar's global network effects and marginally reduce U.S. financing costs, but they are no substitute for fiscal discipline. The gathering has so far exposed three distinct institutional approaches. The Bank for International Settlements leans toward sidelining stablecoins while giving tokenized deposits a central role. The European Central Bank prefers moving central bank money onto blockchain rails. The IMF, by contrast, is more willing to acknowledge stablecoins' real-world efficiency in cross-border payments, yet it sees the main risk in emerging-market currency substitution and volatile capital flows. This three-way divergence carries more policy weight than a blanket endorsement or rejection of stablecoins. The remarks were reported by PANews on Aug. 30.








