Jan 22 (Reuters) – The IMF’s first deputy managing director said on Thursday that the uptake of stablecoins in some countries could put pressure on those countries to improve their fiscal and monetary frameworks. “As stablecoins create the potential for additional uptake in, you know, jurisdictions that have weak fiscal and monetary frameworks for dollars, […]
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Stablecoins could put competitive pressure on monetary frameworks, IMF official says at Davos
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Jan 22 (Reuters) – The IMF’s first deputy managing director said on Thursday that the uptake of stablecoins in some countries could put pressure on those countries to improve their fiscal and monetary frameworks.
“As stablecoins create the potential for additional uptake in, you know, jurisdictions that have weak fiscal and monetary frameworks for dollars, or for other currencies, that creates a competitive pressure on those countries themselves in order to improve their fiscal and monetary frameworks,” Dan Katz, the International Monetary Fund’s number two official, said on a panel at Davos.
Some analysts have raised concerns that the growth of dollar-backed stablecoins could suck deposits out of banks in emerging economies.
(Reporting by Elizabeth Howcroft and Phoebe Seers, editing by Kirstin Ridley)