Domestic Stablecoins May Increase Demand for Dollar-Backed Tokens, IMF Says

The rise of domestic stablecoins could ultimately boost demand for dollar-backed tokens, according to International Monetary Fund First Deputy Managing Director Dan Katz.

Speaking on the adoption trends of digital assets, Katz noted that users may increasingly favor digital dollars over local alternatives because of their superior liquidity, established network effects, and widespread cross-border acceptance. The analysis highlights how the expansion of local stablecoin ecosystems can inadvertently strengthen the dominance of U.S. dollar-pegged digital assets within the global financial architecture.