The International Monetary Fund (IMF) has issued a warning about the potential risks that USD-pegged stablecoins could pose to emerging markets. According to the IMF, these digital assets might undermine local currencies by facilitating currency substitution and capital outflows from developing economies. The concern centers on how stablecoins, which are typically pegged to the US dollar, could provide an alternative to national currencies in countries facing economic instability. While some experts acknowledge these risks, they also note that the stablecoin ecosystem is still evolving and regulatory frameworks are being developed to address potential vulnerabilities. The IMF's statement highlights the growing attention financial regulators are paying to the expanding cryptocurrency market and its potential impact on global financial stability.

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