A new paper published by the International Monetary Fund (IMF) says dollar stablecoins could improve access to foreign currency in economies with fixed or tightly controlled exchange rates, but they could also amplify currency runs when pressures on domestic currencies become severe.
The findings come from a research paper by economist Brandon Joel Tan. The paper, titled “Stablecoins and vulnerabilities in fixed exchange rate regimes,” modeled how stablecoins would impact parallel foreign exchange (FX) markets when access to public dollars is restricted.
The findings highlight that stablecoins can help people access dollars when banks and official exchange channels are unable to meet demand. However, during a currency crisis, stablecoin prices, which are similarly widely watched, could cause many people to abandon their local currency at the same time, suggesting that regulators may require temporary restrictions on unusually large or panic-driven transactions.
Tan argued that stablecoins would make dollar-like claims “more accessible” and create a visible, high-frequency price for dollar demand. If a country’s official exchange rate is far from the market rate, its price may signal a growing dollar shortage and at the same time encourage more people to exit the local currency.
Stablecoins emerge as parallel FX benchmarks
The paper’s discussion reflects how stablecoins are already being used in countries where public access to the dollar is restricted. On June 9, 2025, retailers at Bolivian airports were seen pricing goods with reference to USDT, while still accepting US dollars or Bolivianos.
In 2024, Cointelegraph reported that Argentines were using underground “crypto caves” to exchange pesos for dollar stablecoins at rates close to the unofficial market. The practice offered residents another way to preserve their savings as the peso lost value and currency controls limited access to the dollar.
dollar stablecoin
While these uses have highlighted the benefits of stablecoins, regulators have also recently warned of broader risks. On March 24, the Financial Stability Board (FSB) said dollar stablecoins could expose emerging economies to currency substitution, weak monetary policy, and avoidance of capital mobility measures.
The FSB called on MPs to assess how the stablecoin sector is evolving to understand and address liquidity and operational risks as stablecoins connect with the broader financial system.
