Dollar stablecoins could improve FX access but amplify currency runs: IMF paper

Written by Ezra Reguerrastaff writerReviewed by Yohan Yunstaff writerWritten by Ezra Reguerrastaff writerReviewed by Yohan Yunstaff writerDollar stablecoins could improve FX access but amplify currency runs: IMF paperLatest NewsPublishedJul 11, 2026An 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.Dollar stablecoins could improve access to foreign currency in economies with fixed or heavily managed exchange rates, but may also amplify currency runs when pressure on the domestic currency becomes severe, according to a new paper published by the International Monetary Fund (IMF). The findings come from a working paper by economist Brandon Joel Tan. Titled “Stablecoins and Fragility in Fixed Exchange Rate Regimes,” the paper modeled how stablecoins affect parallel foreign-exchange (FX) markets when official dollar access is rationed. The findings highlight that stablecoins can help people get access to dollars when banks or official exchange channels cannot meet demand. However, during a currency crisis, the same widely watched stablecoin price could prompt many people to abandon the local currency simultaneously, suggesting that regulators may need temporary limits on unusually large or panic-driven transactions. Tan argued that stablecoins make “dollar-like claims easier to access” while creating a visible, high-frequency price for dollar demand. When a country’s official exchange rate is far from the market rate, that price can signal growing dollar scarcity and prompt more people to move out of the local currency at the same time. Stablecoins emerge as parallel FX benchmarksThe paper's argument reflects how stablecoins are already being used in countries where official access to dollars is limited. On June 9, 2025, Bolivian airport retailers were seen pricing goods using USDT as a reference, while still accepting US dollars or …

Dollar stablecoins could improve FX access but amplify currency runs: IMF paper

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