IMF Warns Stablecoins Threaten Banks, Boosting Bitcoin Layer 2

The International Monetary Fund (IMF) has framed dollar-pegged stablecoins as a potential systemic risk, particularly for smaller economies. In a recent report, the fund expressed concern that widespread adoption of digital dollars could ‘hollow out’ weaker local currencies like the Peruvian sol, Nigerian naira, and Turkish lira, diluting central banks’ control over domestic monetary policy. While acknowledging benefits like cheaper payments, the IMF’s analysis underscores a fragmenting global monetary landscape where digital dollar tokens compete directly with national fiats.

This institutional concern reinforces a core narrative within cryptocurrency: the growing demand for scarce, non-sovereign assets that exist outside the traditional financial system. As the IMF highlights the risks of a dominant digital dollar, Bitcoin’s fixed supply and decentralized nature present a contrasting proposition. The warning implicitly bolsters Bitcoin’s appeal as a potential hedge in a world where monetary sovereignty is increasingly contested, shifting focus from pure speculation to the practical infrastructure being built atop the Bitcoin network.

While the macro backdrop may drive capital toward Bitcoin ($BTC), its base layer presents significant practical hurdles for everyday use and complex applications. On-chain Bitcoin transactions are constrained by minutes-long confirmation times, volatile fees, a throughput of roughly 7 transactions per second (TPS), and minimal native support for smart contracts. These limitations have catalyzed a race to develop specialized Layer 2 scaling solutions that can handle payments and decentralized finance (DeFi) at scale.

Multiple projects are competing to capture and mobilize BTC liquidity. The Lightning Network focuses on instant, off-chain payment channels. Alternatives like Stacks and Rootstock employ sidechains and alternative virtual machines to bring DeFi functionality into Bitcoin’s orbit. This renewed focus on infrastructure aims to answer a critical question: if Bitcoin’s value lies in its monetary properties, how can that value be made programmable, spendable, and usable at high speed? The answer, for a growing cohort of developers and investors, lies in these secondary layers.

Amid this competitive landscape, Bitcoin Hyper ($HYPER) is attempting to carve out a distinct niche by integrating technology from Solana ($SOL). It bills itself as the first Bitcoin Layer 2 utilizing the Solana Virtual Machine (SVM), aiming to combine Bitcoin’s security with Solana’s renowned throughput and developer ecosystem. The project’s architecture treats Bitcoin as a secure settlement layer while deploying a modular SVM-based Layer 2 as a high-performance execution engine.

This technical approach promises specific advantages: sub-second transaction finality that reportedly exceeds Solana’s own benchmarks, Rust-based smart contracts compatible with Solana’s tooling for building dApps in DeFi and gaming, and periodic anchoring of state back to the Bitcoin blockchain to preserve security. The goal is to turn dormant BTC into ‘high-speed capital’ for applications where Bitcoin’s base layer is impractical. Market interest appears significant, with the project’s presale reportedly surpassing $29 million, including large purchases, and offering staking with a 40% annual percentage yield (APY).

As reported by Aaron Walker for NewsBTC, analysts cited in the coverage project a potential price target of $0.08625 for $HYPER by the end of 2026, which from a current price of $0.013375 would represent a potential return on investment of over 544%. This optimistic forecast reflects the high-beta nature of infrastructure plays betting on Bitcoin’s evolving utility. The escalating competition among Bitcoin Layer 2s like Lightning, Stacks, Rootstock, and now Bitcoin Hyper underscores a pivotal shift: the battle to define Bitcoin’s future is increasingly being fought not on its base layer, but in the specialized infrastructure built atop it.