The International Monetary Fund (IMF) has released a new report endorsing central bank-issued digital currencies (CBDCs) while highlighting potential financial risks associated with stablecoins. The report states that stablecoins, a type of cryptocurrency typically pegged to stable assets like the US dollar to maintain price stability, could pose threats to financial stability. According to the IMF, CBDCs offer central banks greater control and transparency within the financial system, whereas the increasing popularity of stablecoins may introduce uncertainty. Following the report, crypto experts and industry representatives criticized the IMF’s stance, arguing that stablecoins have played a vital role in enhancing financial inclusion and that labeling them as entirely dangerous is unfair. The rapid growth of stablecoins in the global market has attracted attention from financial institutions and regulators alike. Several countries are developing their own CBDCs to expand participation in the digital economy and mitigate potential risks posed by cryptocurrencies. Nonetheless, opinions vary on whether CBDCs will benefit the financial system or present new challenges. Experts emphasize the need to balance CBDCs and stablecoins to promote both financial stability and innovation. Going forward, global financial bodies and governments should carefully assess the advantages and risks of these emerging financial technologies and establish appropriate regulations.
Source: coindesk
