What is the IMF's warning about stablecoins?

The IMF warns that the rapid increase in cross-border stablecoin flows could lead to currency substitution and disrupt financial systems in emerging markets.

Which stablecoins are leading the market?

Tether (USDT) and USD Coin (USDC) dominate the stablecoin market, controlling over 90% of the space with a combined circulation exceeding $260 billion.

Where is stablecoin usage growing fastest?

While Asia leads in stablecoin usage, Africa, Latin America, and the Middle East are showing the fastest growth in relation to their GDPs.

Home / Business and Economy / IMF Warns: Stablecoins Overtake Bitcoin, Sparking Global Fears

IMF Warns: Stablecoins Overtake Bitcoin, Sparking Global Fears

6 Dec

•

Summary

Stablecoin flows hit record 2025 highs, surpassing Bitcoin and Ethereum.
IMF warns stablecoins may accelerate currency substitution and disrupt markets.
Asia leads stablecoin usage, with rapid growth in Africa and Latin America.

IMF Warns: Stablecoins Overtake Bitcoin, Sparking Global Fears

Cross-border stablecoin flows have reached unprecedented 2025 highs, surpassing even Bitcoin and Ethereum transactions for the first time. This significant development has prompted a sharp warning from the International Monetary Fund (IMF), which expressed concerns over potential currency substitution and disruption to capital flows in emerging markets.

The IMF's latest analysis indicates a rapid market expansion, with total stablecoin issuance exceeding $300 billion. Primarily driven by Tether (USDT) and USD Coin (USDC), these digital assets facilitated an estimated $23 trillion in trading volume in 2024, a 90% annual increase. This marks a structural shift, with stablecoins evolving from niche settlement tools to dominant drivers of global crypto activity.