The International Monetary Fund (IMF) warns that regulating stablecoins alone is insufficient to mitigate risks. A recent report emphasizes the critical need for strong macro policies and robust international cooperation to ensure stablecoin stability and prevent systemic financial vulnerabilities. While acknowledging the importance of regulatory frameworks – citing examples from the US, UK, Japan, and the EU – the IMF highlights the potential for fragmentation due to differing national approaches and issuance methods. This fragmentation could lead to inefficiencies and hinder interoperability within the global financial system. The IMF stresses that effective macroeconomic management and a strong institutional bedrock are paramount. These factors, combined with international coordination, are the true defenses against the risks associated with the growing stablecoin market. Failure to address these broader economic and cooperative aspects will render even the most stringent stablecoin regulations inadequate. ```