Dan Katz, First Deputy Managing Director of the International Monetary Fund (IMF), stated that local stablecoins may accelerate users' transition to US dollar stablecoins, as users can exchange them through decentralized trading platforms, liquidity pools, or peer-to-peer transactions, reducing the cost of capital conversion and driving foreign exchange activities onto the chain. Dan Katz pointed out that the reasons why users tend to prefer US dollar stablecoins include higher liquidity, stronger network effects, and wider acceptance, and called on regulatory agencies in various countries to include stablecoin entry, exit, and on chain trading platforms in their regulatory frameworks.
