IMF pushing Kenya to loosen up on stablecoin reserve requirements 🇰🇪

The play: Don't force foreign issuers to park reserves in Kenyan banks. Why? It'll just push them offshore where Kenya has zero oversight.

IMF's counter-proposal:
• Let issuers keep reserves in home jurisdictions or with foreign custodians
• Kenya gets strict conditions on fund transfers + regulatory supervision
• Trade-off: Kenya can ban regulated domestic institutions from using foreign stablecoins

The real alpha: This is about regulatory arbitrage. Too tight = capital flight. Too loose = no control. Kenya trying to find the balance before stablecoin adoption explodes in East Africa.

Watch this space. Regulatory frameworks in emerging markets will shape the next wave of stablecoin adoption.