Dollar stablecoins could improve FX access but amplify currency runs: IMF paper
Dollar stablecoins could improve FX access but amplify currency runs: IMF paper
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An IMF working paper suggests that while dollar stablecoins can enhance access to foreign currency, they may also exacerbate coordinated exits from local currencies during periods of significant exchange-rate stress, potentially amplifying currency runs.
An IMF working paper says dollar stablecoins can improve access to foreign currency but may also help coordinate exits from local currencies during periods of severe exchange-rate stress.