IMF Warns Stablecoins Risk Monetary Sovereignty in Emerging Markets

IMF chief Georgieva said at Jackson Hole that stablecoins could cut cross-border costs but risk currency substitution, capital flow instability, and fiscal pressure in developing economies.

Stablecoin & Crypto Regulation News

IMF Managing Director Kristalina Georgieva addressed the Jackson Hole Economic Policy Symposium on Aug. 28, laying out a case that

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are making the global financial system faster and more fluid. She argued that speed comes with a cost: a more fluid system transmits risk faster too, and makes the penalty for policy errors larger. Cross-border payment costs have remained persistently high for years, she noted, and high costs push households and businesses toward informal payment channels. Stablecoins, she said, have shown genuine potential to reduce both the cost and the time required for large international transfers.

Tokenization is also already changing back-office processes, she added. Automated margin calls and compressed settlement times are shifting the nature of operational risk in ways that regulators have not fully addressed. Georgieva said these changes are likely to accelerate, and that the pace of regulatory adaptation will determine whether the benefits or the risks dominate.