According to Digital Asset, an International Monetary Fund (IMF) report highlights that when banks or official forex markets fail to meet the demand for U.S. dollars, dollar stablecoins can enhance foreign currency accessibility, reduce transaction costs, and improve financial inclusion. However, when the gap between official exchange rates and market rates widens, it may accelerate the flow of funds from local currencies to dollar assets and rapidly spread market unease during crises. Simulations show that in economies relying solely on cash, the average probability of a crisis is 3.9%, which rises to 7.4% after stablecoins become widespread. During periods of maximum exchange rate deviation, household welfare could drop by as much as 6.3%. The report suggests that regulators consider macroprudential measures, such as temporary transaction restrictions, to address large-scale trades or panic-induced sell-offs. https://(wublock123.com)/news/imf-us-dollar-stablecoins-may-exacerbate-the-risk-of-local-currency-selling-and-runs-during-crises-64499