Stablecoins Surpass Bitcoin in Cross-Border Payments as IMF Warns of Emerging Market Risks

Source: CoinEdition Original Title: Bitcoin Loses the Payments War: Stablecoins Take the Lead in Global Settlement Original Link: https://coinedition.com/imf-stablecoin-report-monetary-sovereignty-genius-act-dollarization/

IMF Issues Warning on Stablecoin Market Growth

The International Monetary Fund (IMF) issued a stark warning to global central bankers on December 5, explicitly flagging the $312 billion stablecoin market as a direct threat to the monetary sovereignty of emerging economies.

In its report, Understanding Stablecoins, the Fund acknowledged that while digital dollars streamline settlement, they simultaneously accelerate “cryptoization,” neutralizing the ability of weaker nations to manage their own capital flows.

The Opportunities: Frictionless Payments Led by USD-Backed Tokens

The IMF reported that stablecoins can revolutionize cross-border payments. The tokenization of top-tier treasuries on the blockchain has reduced friction in payments, especially in countries suffering from perennial high inflation.

Stablecoin adoption has more than doubled in the last two years to hover around $312 billion. The stablecoin’s growth has accelerated in the past few months fueled by the implementation of the GENIUS Act in the United States.

The IMF noted that stablecoins backed by the U.S. dollar have been leading in cross-border payments even compared to native crypto assets. USD-backed stablecoins have enabled more than $170 billion in cross-border payments in 2025 compared to around $125 billion in Bitcoin (BTC) and Ethereum (ETH).

Global Risk: Undermining Monetary Sovereignty

The IMF highlighted that the rising use of stablecoins is gradually undermining monetary policies in emerging markets. Global central banks where USD-backed stablecoins are used have less influence on their local currencies.

“Stablecoins also carry significant risks related to macro-financial stability, operational efficiency, financial integrity, and legal certainty. Stablecoins may contribute to currency substitution, increase capital flow volatility,” the IMF report noted.

The use of USD-backed stablecoins has surged in countries with high inflation such as Lebanon, Nigeria, Turkey, and Argentina. As such, the respective local currencies have further weakened.

The IMF has raised an alarm on stablecoins undermining monetary sovereignty. In collaboration with the Financial Stability Board (FSB), the IMF has issued a comprehensive policy recommendation to global central banks on how to approach stablecoins.

Market Response: Tokenization is Here to Stay

The IMF report has solicited a heated social debate. According to industry observers, the IMF report further validates the mainstream adoption of stablecoins, especially on the Ethereum network.

The mainstream adoption of stablecoins has helped institutional investors use crypto assets in a regulated manner through tokenization of real-world assets. Stablecoins are also a major source of liquidity for the wider volatile crypto assets, especially during bear markets.

Industry experts suggest that stablecoins will evolve from a niche product in coming years, becoming increasingly integrated into traditional banking and payment infrastructure.