The rise of stablecoins could reduce the control of national monetary authorities, according to the International Monetary Fund.

As noted by the International Monetary Fund in a recent report, stablecoins offer an opportunity to expand access to financial services for millions of people, but they could also undermine the authority of central banks.

The 56-page document published on December 4 by the international organization highlights “currency substitution” as one of the main risks associated with the spread of stablecoins. This phenomenon could gradually compromise the financial independence of many states, the IMF stated.

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