IMF: Stablecoins May Replace Official Currencies, Need Effective Crypto Policies

The IMF said the collapse of FTX, Terra, and LUNA last year highlighted the urgency of developing clear policies to protect investors and prevent abuse. While some policymakers have taken necessary steps to protect consumers and ensure financial integrity, it is also important to consider the broader implications of cryptocurrencies. These assets, especially stablecoins denominated in hard currencies, could replace official currencies and have a significant impact on the monetary and fiscal policies of countries. This is especially true in emerging market and developing economies, the IMF said, underscoring the need for a comprehensive, consistent and coordinated policy approach to cryptocurrencies. A sound macro policy foundation, clear legal treatment and detailed rules, and effective implementation are the three key pillars of cryptocurrency policy. The IMF will continue to support the G20’s submission of a joint IMF-FSB comprehensive document to the leaders’ summit in September, emphasizing the “cornerstones” of effective crypto policy.