IMF: LOCAL STABILIZATION CURRENCY MAY INCREASE DEMAND FOR UNITED STATES DOLLAR STABILIZATION CURRENCY

On 8 August, the First Vice-President of the International Monetary Fund (IMF), Dankatz, stated that a local stabilization currency aimed at reducing reliance on the United States dollar ' s stabilization currency might instead speed up the switch to the United States dollar. According to Katz, when local and United States dollar stable currencies operate on the same block-chain infrastructure, users can achieve conversions between the two by decentralizing trading platforms, liquidity pools or point-to-point transactions, which may reduce the cost of capital conversion and facilitate the transfer of foreign exchange activities from traditional banks and money dealers to the chain. He said that the introduction of the local currency of stability might even accelerate the introduction of the currency of foreign exchange (the United States dollar of stability). In South Africa, for example, Katz noted that, while the dollar stabilization currency had already been used on the ground on a certain scale, there was a lower demand for local stabilization currency linked to rant. While it is still not possible to reach a clear conclusion, users may be more inclined to stabilize the dollar because of higher liquidity, stronger network effects and wider platforms and cross-border acceptance. According to Katz, the impact of currency stabilization varies from country to country. In highly dollarized economies, currency stability may largely replace existing dollar assets, while in countries with limited access to the dollar and a weak economic base, currency stability may further increase foreign currency demand. He called on national regulators to incorporate stable currency entry, export and chain trading platforms into regulatory frameworks to reduce potential risks。