IMF’s Bo Li questions stablecoin’s ‘money’ status even as it clocks $35T

• IMF flags unresolved regulatory and classification issues surrounding stablecoins globally.
• U.S. and Hong Kong spark stablecoin regulation race with bold legislative moves.

Stablecoins clocked a whopping $35.0 trillion in on-chain transaction volume over the past year, according to data from Visa on-chain analytics. The average supply hovered around $194.6 billion. 

While this data cements their central role in crypto infrastructure, not everyone is convinced they’ve earned “currency” status yet.

That skepticism came into sharp focus at the World Economic Forum’s Summer Davos, where IMF Deputy Managing Director Bo Li asked two pointed questions:

Are stablecoins money? If so, do we classify them as M0, M1, or something else entirely?

IMF Deputy MD says “policy experiments” everywhere

Li noted that global regulatory efforts are still experimental at best. While the U.S., Europe, and parts of Asia have made early moves, coordination is lacking.

Remarking on the same, Bo Li in his statement at the Summer Davos 2025 said, 

“Currently, a large number of digital currency or stablecoin regulatory experiments and explorations are being carried out around the world.”

From the GENIUS Act in the U.S. to Hong Kong’s Stablecoin Ordinance set for August 2025, national policies are diverging fast.

The concerns

Beyond classification challenges, Li highlighted enforcement as a key concern, warning that fragmented national regulations could create compliance hurdles and leave room for regulatory loopholes.

He stressed the importance of harmonized international regulations, noting that the IMF is collaborating with organizations such as the Financial Stability Board and the Basel Committee to provide cohesive policy direction.

What lies ahead for stablecoins?

Meanwhile, the regulatory push hasn’t slowed stablecoin growth.

With the stablecoin market now surpassing $250 billion in supply and a large share of that capital parked in BTC, investors are increasingly questioning when the next wave of capital rotation might occur.

Though skepticism persists, market signals are beginning to resemble the early stages of historic altcoin breakouts, hinting that the stablecoin narrative could soon trigger a broader shift across the digital asset landscape.