IMF Issues Guidelines on Stablecoin Risks

Derived from HashNews, the International Monetary Fund (IMF) has released a comprehensive report titled 'Understanding Stablecoins,' analyzing the potential impacts of the growing stablecoin market and the adequacy of global regulatory frameworks. The report highlights that while emerging regulations can mitigate risks to macro-financial stability, the current approach by policymakers and the issuance methods of stablecoins remain fragmented. The IMF also noted that the rapid proliferation of new stablecoins across different blockchains and exchanges has raised concerns about inefficiencies due to a lack of interoperability. It emphasized that strong macroeconomic policies and robust institutions should serve as the first line of defense, with international coordination being key to addressing these challenges. The report further states that the two largest stablecoins by market capitalization, Tether's USDT and Circle's USDC, are primarily backed by short-term U.S. Treasury securities, reverse repurchase agreements, and bank deposits. Approximately 40% of USDC reserves and 75% of USDT reserves consist of short-term U.S. Treasuries, with Tether also holding 5% of its reserves in Bitcoin. Most stablecoins are pegged to the U.S. dollar, with only a few issuers using other currencies like the euro. As of December, the total market capitalization of stablecoins exceeded $300 billion. In the U.S., the implementation of the GENIUS Act, signed by President Trump in July, has led regulators to work on establishing a comprehensive framework for payment stablecoins. Blockchain security audit firm CertiK reported that this move has effectively divided liquidity into separate stablecoin pools for the U.S. and the EU.