Local Stablecoins Could Boost Dollarization, IMF Says
The assessment broadens the issue beyond crypto markets to payments, monetary sovereignty and competition between local currencies and digital-dollar rails.
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The assessment broadens the issue beyond crypto markets to payments, monetary sovereignty and competition between local currencies and digital-dollar rails.
The Bank for International Settlements argues that pegged tokens trade and redeem like fund shares rather than money, and that their FX flows mirror deposit dollarization in vulnerable economies.
Even at $1T–$3T in market cap, the BIS argues wider stablecoin adoption would strain bank funding and credit while delivering only modest output gains.