Stablecoin Skepticism Grows As IMF Official Challenges Their Money Role
Stablecoins processed 35 trillion in on-chain transaction volume over the past year, with an average supply of approximately 195 billion. These tokens, such as USDC and USDT, are integral to crypto trading, facilitating trades, loans, and cross-border transfers. IMF Deputy Managing Director Bo Li raised concerns about the classification of stablecoins, questioning whether they fit into existing monetary categories or require a new classification. The U.S. is advancing the GENIUS Act, while Europe and Hong Kong are developing their own regulations, highlighting a lack of global regulatory unity. This fragmented approach could increase costs for businesses and confusion for users. The IMF is collaborating with the Financial Stability Board and the Basel Committee to create consistent guidance for regulators. Stablecoin supply has exceeded 250 billion, with significant capital invested in Bitcoin, potentially indicating an upcoming surge in trading activity as market confidence grows.
