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G20 members ask IMF to examine risk associated with stablecoins

Steven Zheng

G20 nations are asking the International Monetary Fund (IMF) to help establish some of the economic implications associated with stablecoins, Reuters reports.

In a press release obtained by FXStreet, the nations said, "We ask the IMF to examine macroeconomic implications, including monetary sovereignty issues in its members of global stablecoins." The nations also add that while they acknowledge the "potential benefits of financial innovation," they agree that stablecoins could give rise to a set of "serious" public policy and regulatory risk.

"Risks such as money laundering illicit finance, consumer and investor protection, need to be evaluated before stablecoin projects can commence operation," the press release reads.

On Thursday, members of the G7 published a report stating that bitcoin and other cryptocurrencies have failed to be "reliable and attractive" means of payment or store of values.