IMF working paper finds dollar stablecoins widen FX access but can coordinate runs on pegged currencies

Brandon Tan's IMF Working Paper 2026/144, published July 10, models dollar stablecoins in parallel FX markets where official dollar access is rationed. Stablecoins improve access and price discovery when misalignment is low, but under severe peg stress their visible high-frequency price synchronizes exits from the local currency. The paper points to keeping access cheap in normal markets and using temporary, targeted measures for large or run-like flows when misalignment is high.

TLDR by @Benthic

Explore the topic

• Stablecoins
• FX