Executive Summary v

Acronyms and Abbreviations vi

1. Introduction 1

2. Cross-Border Flows in FX Stablecoins 2

3. Sources of Demand for FX Stablecoins 5

4. Macrofinancial Implications from Large-Scale FX Stablecoin Adoption 9

  A. Structural Implications 9

  B. Vulnerability to Shocks 15

5. Initial Considerations on Policy Measures to Manage and Enhance Macrofinancial Stability 17

  A. Structural Policies 18

  B. Management of Shocks Using the IPF 23

6. International Cooperation and Role of the IMF 30

7. Conclusion 32

Annex 1. Preliminary Evidence on the Costs of Cross-Border Transfers with Stablecoins 33

Annex 2. Fiscal Risks Arising from Stablecoins and Risk Mitigation Measures 34

Annex 3. Country Examples of Stablecoin Judicial Developments and Legal Reforms 35

Annex 4. Access Restrictions to Crypto Assets in the 2024 Annual Report on Exchange Arrangements and Exchange Restrictions 37

Annex 5. Alternative Medium-Term Possibilities under the Integrated Policy Framework 39

Annex 6. Outflow Capital Flow Management Measures (CFMs) in Iceland in 2008 and Ukraine in 2014–15 46

References 49