The International Monetary Fund (IMF) has issued a warning about the growing threat of stablecoins, particularly those backed by the US dollar, in emerging markets. The IMF report highlights that these digital assets are rapidly infiltrating economies worldwide, potentially undermining control over monetary policies and increasing financial instability. Concerns center around stablecoins entering markets through mobile devices and internet connections, leading to currency substitution and weakening local currencies. This dynamic poses a challenge to central banks’ ability to manage their economies and may be particularly impactful in vulnerable regions like Africa, the Middle East, and Latin America.