IMF warns stablecoins cannot replace fiscal discipline as global debt risks mount

The IMF warned that the growing adoption of dollar-backed stablecoins must not weaken fiscal and monetary discipline in the issuing countries. Managing Director Kristalina Georgieva emphasized that countries issuing reserve assets, particularly the U.S., have a responsibility to ensure the new financial system limits adverse effects on international monetary stability. While stablecoins could provide benefits to issuer countries, the IMF stressed that such gains cannot substitute for responsible macroeconomic policy.