## Stablecoins and Macroeconomic Stability: A DSGE Investigation

_IMF Working Papers, June 26, 2026_

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## Bibliographic details
- Authors: Hui He, Yao Zhao, Dayong Zhou
- Published: June 26, 2026
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798229049702.001

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### Overview and model structure
- Paper objective: develop a new monetarist DSGE model to examine the macroeconomic implications of fiat-money-backed stablecoins and the effectiveness of prudential policies in mitigating associated risks.
- Sectoral structure:
  - Centralized real economy: fiat money facilitates consumption and investment.
  - Decentralized virtual economy: anonymous bilateral search and matching; transactions are exclusively conducted using stablecoins.
- Calibration: model calibrated to the U.S. economy.

### Key simulation findings
- Stablecoins amplify the propagation of exogenous shocks to key macroeconomic variables by weakening the effectiveness of monetary policy.
- Prudential regulations governing the backing ratio of stablecoins to fiat-denominated reserve assets can serve as stabilizing instruments.
- Such prudential regulations are analogous to banking liquidity requirements and can:
  - dampen volatility, and
  - enhance macroeconomic resilience in the presence of stablecoins.

### Policy implications and recommendations
- Regulatory focus on backing ratios of stablecoins to fiat-denominated reserve assets as a primary macroprudential tool.
- Design prudential regulations similar in spirit to banking liquidity requirements to mitigate amplification of shocks and restore monetary policy effectiveness.
- Use prudential policies to limit systemic transmission channels introduced by a decentralized virtual economy relying exclusively on stablecoins.

### Publication and metadata
- Authors: ByHui He, Yao Zhao, Dayong Zhou
- Publication date: June 26, 2026
- Series: IMF Working Papers, Working Paper No. 2026/129
- Volume: 2026
- Issue: 129
- Pages: 38
- DOI: https://doi.org/10.5089/9798229049702.001
- Stock No: WPIEA2026129
- ISBN: 9798229049702
- ISSN: 1018-5941

*Source: Stablecoins and Macroeconomic Stability: A DSGE Investigation, IMF Working Papers, ByHui He, Yao Zhao, Dayong Zhou, June 26, 2026.*

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_Source: https://www.imf.org/en/publications/wp/issues/2026/06/23/stablecoins-and-macroeconomic-stability-a-dsge-investigation-576861_