IMF Warning: Stablecoins Could Erode Central Bank Monetary Sovereignty Like a "Trojan Horse"

IMF Warns Dollar Stablecoins Erode Monetary Sovereignty, But US Sees New Leverage; Global Financial Order Faces Reshuffling

(Previously: FSC’s Peng Jinlong: Taiwan Stablecoins Will Be Issued by “Financial Institutions” First, Could Launch as Early as June 2026) (Background: What is the Taiwan Disease? The Economist Overlooks the Frightening Balance: Life Insurance, Tax System, and Real Estate Together Hijack the New Taiwan Dollar)

The International Monetary Fund ((IMF)) released a 56-page report on the 4th, directly stating that dollar-pegged stablecoins are rapidly eroding the monetary sovereignty of nations. Meanwhile, Washington sees this trend as a new tool of hegemony, creating a stark strategic divergence.

Penetration Speed Surpasses Traditional Controls

In inflation-stricken Istanbul and Buenos Aires, people often convert their local currency to USDT or USDC as soon as they get paid. With just a few taps on their phones, funds flow across borders through non-custodial wallets, easily bypassing traditional counters and customs checks. The IMF points out that the “currency substitution” effect is weakening central banks’ ability to regulate interest rates and liquidity. If demand for the local currency collapses, monetary policy becomes an empty gesture.

The report estimates that the global stablecoin market cap is about $311 billion, with 97% pegged to the US dollar, likened to a silent currency coup. The IMF warns that if countries allow stablecoins to gain payment advantages, “the foundation of sovereignty may be eroded,” and the process is almost irreversible.

The Rise of a Digital Dollar Monopolar Order

According to CoinGecko data, the total amount of euro stablecoins is just $675 million, and the yen only $15 million—a world apart from the scale of the dollar. This means that in the on-chain world, the dollar not only extends its real-world dominance but also expands its reach through the 24/7 blockchain network. For the European Central Bank ((ECB)), no matter how carefully they design a digital euro, it will be hard to compete with existing dollar stablecoins in the short term. The ECB admits in its latest financial stability report that foreign stablecoins could disrupt payment systems and increase the risk of funds flowing out of the banking system.

Washington’s Tailwind: The U.S. Debt and Stablecoin Loop

In response to the IMF’s concerns, U.S. Treasury Secretary Scott Bessent offered a completely different interpretation. He recently said in public:

“Demand for stablecoins is essentially demand for U.S. government debt.”

Because issuers must hold large amounts of short-term U.S. Treasury bonds to maintain the 1:1 peg, global risk-averse capital flows into the U.S. Treasury via stablecoins, further lowering government financing costs. In its 2026 outlook, BlackRock even lists stablecoins alongside AI as “superpowers” reshaping the market. By this logic, the dollar is not only an international settlement currency but, through blockchain technology, becomes a highly liquid, programmable asset, further strengthening Washington’s fiscal muscle.

Regulatory Barriers and Southern Realities

The IMF recommends that countries “absolutely should not” grant stablecoins legal tender status, and should enforce 1:1 reserves, full disclosure of asset composition, and accelerate the launch of central bank digital currencies ((CBDC)). However, in high-inflation countries like Argentina, public trust in local currency is already depleted; if the official CBDC experience is poor, people will still flock to privately issued dollar stablecoins. For these users, compliance has never been the core consideration—preserving the value of their assets is.

Thus, on one side is the 20th-century central banking system trying to maintain policy borders; on the other is a borderless, high-efficiency, dollar-centric 21st-century financial network. The IMF’s call is flawless in theory, but with U.S. debt interests and market demand advancing in tandem, stablecoins seem to be an irreversible trend. The Trojan horse has already entered the city, filled with digital dollars.

Related Reports

Taiwan Central Bank Governor Yang Chin-long: Stablecoins Are “Wildcat Banks,” CBDC Should Be Used for Taiwan’s Compliant Digital New Taiwan Dollar FSC’s Peng Jinlong: Taiwan Stablecoins Will Be Issued by “Financial Institutions” First, Could Launch as Early as June 2026 China Officially Comments on Stablecoins for the First Time, Ending the Era of “Grey Area” Fantasies About Stablecoins

This article, “IMF Warns: Stablecoins Will Erode Central Bank Monetary Sovereignty Like a Trojan Horse,” was first published on BlockTempo, the most influential blockchain news media.