[IMF Deputy Managing Director: Local Currency Stablecoins May Drive Users Toward Digital Dollars] According to a report by Cointelegraph, Dan Katz, First Deputy Managing Director of the International Monetary Fund (IMF), stated that local currency stablecoins, which are designed to reduce reliance on dollar stablecoins, might instead make it easier for users to shift toward digital dollars. Once local currency stablecoins and dollar stablecoins operate on the same blockchain infrastructure, users can easily switch between the two through decentralized exchanges, liquidity pools, or peer-to-peer conversions. This could accelerate the shift of foreign exchange activities from banks and currency dealers to on-chain platforms, weakening authorities' ability to monitor and manage capital flows. Katz noted that while it is too early to draw definitive conclusions, many users may prefer dollar tokens due to their high liquidity, network effects, and ability to be used across platforms and borders. Katz emphasized that the risks vary by country.