The Financial Stability Board (FSB) warned in its 2025 annual report that US dollar-denominated stablecoins may pose greater risks to financial stability in emerging markets and developing countries. The report notes that the circulation of dollar stablecoins across multiple jurisdictions could lead to currency substitution, reduced usage of local payment systems, weakened monetary policy effectiveness, and circumvention of capital controls. The FSB stated that as stablecoins deepen their connections with the traditional financial system, regulators across countries need to continue monitoring relevant liquidity, operational risks, and systemic impacts. (Cointelegraph)
The Financial Stability Board (FSB) warned in its 2025 annual report that US dollar-denominated stablecoins may pose greater risks to financial stability in emerging markets and developing countries. The report notes that the circulation of dollar stablecoins across multiple jurisdictions could lead to currency substitution, reduced usage of local payment systems, weakened monetary policy effectiveness, and circumvention of capital controls. The FSB stated that as stablecoins deepen their connections with the traditional financial system, regulators across countries need to continue monitoring relevant liquidity, operational risks, and systemic impacts. (Cointelegraph)