The International Monetary Fund (IMF) said that stablecoins could help improve payment systems and enhance financial stability if countries implement strong regulatory and supervisory frameworks. In a blog post published on 4 December, IMF officials argued that the next generation of stablecoins could address long-standing inefficiencies in cross-border transfers and offer benefits for emerging markets.
The analysis highlights that stablecoins, which are digital tokens pegged to fiat currencies, have evolved significantly since their early iterations. According to the IMF, earlier designs carried substantial market, liquidity and governance risks. Improved structures, clearer rules and robust asset backing could now make these instruments safer and more predictable for global use.
How stablecoins could improve payments
The IMF notes that stablecoins can reduce settlement times, cut remittance costs and improve payment resilience. They could also help integrate fragmented financial systems by allowing smoother currency conversions in regions with volatile exchange rates. These features have made stablecoins attractive in parts of Latin America and Africa where dollarised digital payments are growing quickly.
Yet the institution stressed that benefits remain conditional on strict oversight. The blog calls for requirements covering redeemability, asset segregation, liquidity management and transparency. Officials argue that stablecoins should operate within the financial sector rather than outside it, making regulated entities responsible for issuance, asset custody and user protection.
The IMF also emphasised interoperability. Stablecoins that follow global standards could work alongside central bank digital currencies and tokenised deposits. This design would allow smoother settlement across jurisdictions and reduce concentration risks from a single dominant provider. The fund views this public-private alignment as essential to ensuring stability as digital money grows.
Implications for Europe
The IMF’s position aligns with Europe’s regulatory trajectory under the Markets in Crypto-Assets framework. MiCA-compliant stablecoins must meet stringent capital, liquidity and governance rules, which could position the EU as an early adopter of the type of regulated environment the IMF describes. European officials have repeatedly expressed concerns about the systemic role of dollar-backed tokens. The IMF’s message, that well-regulated stablecoins can complement rather than erode monetary control, may inform ongoing debates around the digital euro and private-sector innovation.
At the same time, the report underscores a potential competitive gap. Dollar stablecoins remain dominant globally, while euro-denominated versions represent a small share of the market. The IMF suggests that without proactive policy, regions that fail to develop safe digital-asset ecosystems risk falling behind countries that combine regulatory clarity with market innovation.
The discussion arrives as the European Central Bank progresses through its own digital-euro development phase. The ECB has described coexistence between public and private digital money as part of its long-term strategy. The IMF analysis reinforces this approach by arguing that stablecoins and CBDCs should be viewed as complementary rather than competing tools for modern financial systems.