IMF paper warns stablecoins could worsen currency crises

A new IMF paper warns that dollar stablecoins could make currency crises worse in vulnerable economies.
Economist Brandon Joel Tan argues that regulators may need limits on panic-driven stablecoin transactions.
The concern is that during stress, people could rush from local currencies into dollar-backed tokens, accelerating capital flight.
For $USDT, $USDC, and broader stablecoin markets, the signal is that regulators are starting to treat stablecoins as macro-financial infrastructure, not just crypto trading tools.
The bigger question is whether governments respond with transaction limits, stricter reserve rules, or closer monitoring of large stablecoin flows.