IMF Chief Says Stablecoins Could Boost Liquidity but Raise Currency Risks

International Monetary Fund Managing Director Georgieva said at the Jackson Hole conference that stablecoins and tokenization could improve global financial liquidity and make large cross-border payments cheaper and faster. According to Odaily, she also said stablecoins may intensify currency substitution, capital flows, and exchange-rate volatility, while weakening capital controls and monetary sovereignty. Georgieva said dollar-backed stablecoins could expand the dollar’s global network effects and marginally lower U.S. financing costs, but they cannot replace fiscal discipline. She also noted that the BIS tends to favor marginalizing stablecoins and placing tokenized deposits in the middle, while the ECB supports putting central bank money on-chain.