$305 Billion Crypto Timebomb? IMF Flags Stablecoins as New Threat to Global Finance
This article first appeared on GuruFocus.
The International Monetary Fund is turning up the volume on a warning that could shake parts of global finance. In its latest Financial Stability Report, the IMF said the $305 billion stablecoin marketonce seen as crypto’s safe cornercould become a source of systemic risk. These tokens, usually backed by liquid assets such as U.S. Treasuries, have ballooned in scale and influence. But if confidence ever cracks, the IMF cautioned, forced liquidations of reserve assets could ripple through bank deposits, government bonds, and repo markets, possibly compelling central banks to step in to stabilize conditions.
The timing is critical. Banks are no longer watching from the sidelines….
