**[IMF: Local Stablecoins May Increase Demand for Dollar Stablecoins]** BlockBeats News, August 8 – Dan Katz, First Deputy Managing Director of the International Monetary Fund (IMF), stated that local stablecoins designed to reduce reliance on dollar stablecoins might instead accelerate users' shift toward dollar stablecoins. Katz pointed out that when local stablecoins and dollar stablecoins operate on the same blockchain infrastructure, users can exchange between the two through decentralized trading platforms, liquidity pools, or peer-to-peer transactions. This could lower the cost of currency conversion and shift foreign exchange activities from traditional banks and currency dealers to on-chain platforms. He remarked, "Local stablecoins might even accelerate the adoption of foreign exchange stablecoins (dollar stablecoins)." Using South Africa as an example, Katz noted that while dollar stablecoins already have a certain level of usage locally, the demand for local stablecoins pegged to the South African Rand is relatively lower. Although no definitive conclusions can be drawn at this stage, users may prefer dollar stablecoins due to factors such as higher liquidity, stronger network effects, and broader platform and cross-border acceptance. Katz believes the impact of stablecoins varies depending on the country's circumstances. In highly dollarized economies, stablecoins may primarily replace existing dollar assets. In contrast, in countries with limited access to dollars and weaker economic foundations, stablecoins could further increase demand for foreign currencies. He urged regulators in various countries to incorporate stablecoin on-ramps, off-ramps, and on-chain trading platforms into their regulatory frameworks to mitigate potential risks. [Original Article Link]