In remarks at the Jackson Hole Economic Policy Symposium, International Monetary Fund Managing Director Kristalina Georgieva called for internationally coordinated regulation of tokenization and stablecoins, alongside stronger fiscal and macroeconomic policies. She said stablecoins could make large-value cross-border payments faster and cheaper, but could also accelerate risk transmission, encourage regulatory arbitrage and excessively disintermediate banks. The regulatory framework should impose strict reserve safety and liquidity rules to support redemption at par, apply similar standards to similar instruments and align national frameworks to improve interoperability and limit contagion. For emerging market and developing economies, stablecoins could facilitate tax evasion, currency substitution and the circumvention of capital controls. Georgieva urged central banks to regulate domestic stablecoin intermediaries, maintain sound banking systems and increase foreign exchange buffers, while governments broaden tax bases and reduce primary deficits. Reserve-asset issuer countries may gain marginally from lower funding costs as stablecoins expand demand for their sovereign debt, but these benefits cannot replace fiscal consolidation. Georgieva also argued that central banks should maintain price stability rather than ease policy or restart asset purchases to relieve fiscal pressures.

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