IMF’s Bo Li concerns stablecoin’s ‘money’ status even as it clocks $35T.
From Asia to Europe, regulators hurry to tame stablecoins before adoption surpasses oversight.
IMF flags unresolved regulatory and category concerns surrounding stablecoins globally. U.S. and Hong Kong spark stablecoin policy race with strong legislative moves. Stablecoins clocked a massive $35.0 trillion in on-chain deal volume over the previous year, according to information from Visa on-chain analytics. The typical supply hovered around $194.6 billion. While this data seals their main role in crypto infrastructure, not everyone is persuaded they’ve made ‘currency’ status. That skepticism entered sharp focus at the World Economic Forum’s Summertime Davos, where IMF Deputy Managing Director Bo Li asked two pointed questions: Are stablecoins cash? If so, do we categorize them as M1, m0, or something else completely? IMF Deputy MD says ‘policy experiments’ everywhere Li kept in mind that worldwide regulative efforts are still speculative at finest. While the U.S., Europe, and parts of Asia have actually made early moves, coordination is lacking. Saying on the exact same, Bo Li in his statement at the Summer Davos 2025 stated, ‘Presently, a great deal of digital currency or stablecoin regulatory experiments and expeditions are being performed all over the world.’ From the GENIUS Act in the U.S. to Hong Kong’s Stablecoin Regulation set for August 2025, nationwide policies are diverging fast.
The concerns Beyond category challenges, Li highlighted enforcement as an essential issue, warning that fragmented national policies could produce compliance difficulties and leave space for regulatory loopholes. He stressed the value of harmonized worldwide regulations, keeping in mind that the IMF is collaborating with organizations such as the Financial Stability Board and the Basel Committee to provide cohesive policy direction.
What lies ahead for stablecoins? Meanwhile, the regulatory push hasn’t slowed stablecoin development. With the stablecoin market now surpassing $250 billion in supply and a large share of that capital parked in BTC, investors are increasingly questioning when the next wave of capital rotation might happen. Skepticism continues, market signals are beginning to look like the early phases of historical altcoin breakouts, hinting that the stablecoin narrative might soon set off a more comprehensive shift throughout the digital property landscape.
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