**[IMF Warns: Widespread Use of Stablecoins May Undermine Central Bank Control]** Reported by Golden Finance, the International Monetary Fund (IMF) stated that while stablecoins have the potential to broaden access to financial services for individuals, this could come at the expense of national central banks. In a 56-page report released on Thursday, the international organization highlighted "currency substitution" as a potential risk posed by stablecoins, noting that this trend could gradually erode the financial sovereignty of nations. Historically, individuals wishing to hold U.S. dollars typically needed to possess physical cash or open specific types of bank accounts. However, the IMF emphasized that "stablecoins can rapidly penetrate a country's economic system via the internet and smartphones." The organization added: "Especially in cross-border scenarios, the use of foreign currency-denominated stablecoins could lead to currency substitution, potentially weakening monetary sovereignty, particularly in cases involving non-custodial wallets." The IMF stated that if a significant portion of economic activity no longer relies on the domestic currency, central banks may struggle to effectively control domestic liquidity and interest rate levels. The report noted that if foreign currency-denominated stablecoins gain a foothold through payment services, local alternatives such as central bank digital currencies (CBDCs) may face competitive pressure. Unlike privately issued stablecoins, CBDCs are sovereign digital currencies issued, regulated, and managed by central banks.