## Understanding Stablecoins

_Departmental Papers, December 4, 2025_

## Source details

**Canonical URL:** [Understanding Stablecoins](https://www.imf.org/en/publications/departmental-papers/issues/2025/12/02/understanding-stablecoins-570602)

## Other formats

- [Markdown version](/en/publications/departmental-papers/issues/2025/12/02/understanding-stablecoins-570602/index.md)
- [Structured JSON version](/en/publications/departmental-papers/issues/2025/12/02/understanding-stablecoins-570602/index.json)
- [Bundle manifest](/en/publications/departmental-papers/issues/2025/12/02/understanding-stablecoins-570602/bundle-manifest.json)

## Bibliographic details
- Authors: Tobias Adrian, Parma Bains, Marianne Bechara, Eugenio M Cerutti, Stephanie Forte, Federico Grinberg, Alessandro Gullo, Martina Hengge, Kathleen Kao, Tommaso Mancini-Griffoli, Soledad Martinez Peria, Marcello Miccoli, Marco Reuter, Nobuyasu Sugimoto
- Published: December 4, 2025
- Series: Departmental Papers
- DOI: https://doi.org/10.5089/9798229024075.087

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### Overview
- Stablecoins are a type of crypto asset that "have seen significant growth and attention recently."
- The paper "provides a comprehensive overview of stablecoins," covering market developments, use cases, potential benefits, associated risks, and the evolving international regulatory landscape.
- Stablecoin issuance "has doubled over the past two years," driven by their use in crypto trades.
- Future demand "could arise from other use cases supported by enabling legal and regulatory frameworks."
- Stablecoins are part of broader interest in asset tokenization.

### Market developments and use cases
- Primary driver of recent issuance: use of stablecoins in crypto trades.
- Potential future drivers: broader payment and tokenization use cases if legal and regulatory frameworks enable them.
- Tokenization may facilitate new forms of digital assets and payments interoperability.

### Potential benefits
- Through tokenization, stablecoins "could increase efficiency in payments through increased competition."
- Potential to support innovative financial solutions that can drive economic growth and create a more inclusive financial ecosystem.

### Risks and vulnerabilities
- Key risk areas identified:
  - Macro-financial stability
  - Operational efficiency
  - Financial integrity
  - Legal certainty
- Exchange-rate and capital-flow concerns:
  - Stablecoins "may contribute to currency substitution" and "increase capital flow volatility."
  - These risks "could be more pronounced in countries experiencing high inflation, weaker institutions, or diminished confidence in the domestic monetary framework."

### Regulatory landscape and international coordination
- The regulatory landscape for stablecoins is "evolving."
- The International Monetary Fund (IMF) and the Financial Stability Board (FSB) "have issued comprehensive policy recommendations."
- Many authorities "have started implementing international standards," but "a fragmented landscape persists."
- Cross-border nature of stablecoins "increases the potential for conflicts between domestic policies," making international cooperation "even more essential."

### IMF role and policy implications
- The IMF "continues to closely monitor developments, offering analysis, guidance, and policy advice to member countries on crypto assets, including stablecoins."
- Policy emphasis:
  - Collaboration among policymakers, regulators, and industry stakeholders to realize benefits while addressing risks.
  - Building resilient legal and regulatory frameworks to enable safe adoption and integration of stablecoins into the global financial system.

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## Content in this bundle

- **Understanding Stablecoins; IMF Departmental Paper No. 25/09; December 2025**
  - [Understanding Stablecoins; IMF Departmental Paper No. 25/09; December 2025 (Markdown version)](/-/media/files/publications/dp/2025/english/usea.pdf.md){rel="alternate" type="text/markdown"}
  - [Understanding Stablecoins; IMF Departmental Paper No. 25/09; December 2025 (PDF)](/-/media/files/publications/dp/2025/english/usea.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/departmental-papers/issues/2025/12/02/understanding-stablecoins-570602_