WASHINGTON, 24th September, 2026 (WAM) -- Stablecoins, digital payments, central bank digital currencies and tokenisation are reshaping the future of finance and raising important questions for regulators and policymakers, according to the International Monetary Fund (IMF).
In its 2026 Annual Report, Navigating a Precarious World, released on Wednesday, the IMF said digital finance continued to expand its reach in 2026, creating new opportunities and risks. Stablecoins remain an area of renewed focus, progress on tokenisation continues, and many countries are advancing work on central bank digital currencies (CBDCs).
After years of development and experimentation, governments in major jurisdictions and financial sector entities are institutionalising blockchain and distributed ledger-powered technologies. The IMF said stablecoin growth has been robust, while their use in cross-border payments and remittances has expanded, although it remains relatively small.
Tokenisation — recording and transferring assets on a widely shared and trusted programmable digital ledger — remains in its infancy but is moving towards commercial deployment.
The IMF warned that stablecoins can become unstable if their underlying assets lose value or users lose confidence in them. Large redemptions could also pose risks to markets for government bonds held by stablecoin issuers. Policymakers are concerned about financial stability, currency substitution, including dollarisation, and financial integrity.
The Fund also cautioned that tokens could speed transactions too much, causing “flash crashes”, in which asset valuations swing widely and too quickly for humans to intervene.
Many IMF members continue to develop CBDCs to gain significant benefits from digitalisation while addressing some of the risks. The European Central Bank concluded the preparation phase for a digital euro in October 2025, laying the technical foundations for issuing a digital currency.
The IMF said maintaining their own currencies allows countries to use monetary policy tools to manage their economies and can support efforts to guard against money laundering and terrorism financing.
The IMF continues to advocate for coherent global regulatory frameworks for digital finance. This includes managing stablecoin risks based on recommendations from the IMF, Financial Stability Board and Bank for International Settlements, as well as making payment systems interoperable.
The Fund also shares knowledge to help members guard against capital flow volatility and preserve their ability to manage exchange rates when conditions are disorderly.