As the stablecoin and cryptocurrency adopt the worldwide, emerging markets are faced by mounted risks to financial sovereignty and financial stability, according to a new report from Moody’s ratings.
Credit rating service warns that widespread use of stablecoins – tokens that are in -1: 1 with another possession, usually a fiat currency such as the US dollar – can weaken the control of central banks at interest rates and stability of exchange rates, a trend called “cryptoization.”
Banks can also “face deposit erosion if individuals change savings from domestic bank deposits to stablecoins or crypto wallets,” report Says.
Moody’s digital asset regulation around the world remains a fragment, with fewer than one-third of countries implementing comprehensive rules, revealing many economies to volatility and systematic shocks.
While the clarity of regulation and improved investment channels often drives the adoption of advanced economies, Moody said the fastest growth is in emerging markets – especially in Latin America, Southeast Asia and Africa – where the use of remittances, mobile payments and inflations.
“(…) The rapid growth of Stablecoins, despite their noticeable safety, identifies systematic weaknesses: inadequate administration can control reserves and force costly government bailouts if the pegs collapse,” Moody said.
The agency said the difference was to highlight not only the potential for financial integration but also the rising risks of financial instability if the oversight failed to maintain.
In 2024, the global owner of digital assets reached approximately 562 million people, up to 33% from last year.
Related: Singapore New Crypto Rules: $ 200k fine, prison risk
European regulations, US and China will speed up
Although most of the world still lacks clear rules around cryptocurrency and stablecoins, Europe, the United States and even China are promoting last year.
On December 30, 2024, after a phased rollout, the remaining provisions of EU markets in crypto-assets (MICA) The regime was implemented. MICA is the Bloc’s crypto rulebook, which is a licensing standard for service providers and setting reserve requirements and disclosure for stablecoins.
In the US, the Genius Act It became law on July 18, which established the implemented standards for release and backing stablecoins.
In Europe and the United States rolling the Stablecoin regulation, China appears to be changing course.
After the ban Crypto trading and mining in 2021Beijing has expanded it Pilots for Digital Yuan And, according to recent reports in August 2025, is strictly controlling weight Yuan-back stablecoins.
On Thursday, People’s Bank of China (PBOC) opened New Operation Center in Shanghai For Digital Yuan, which aims to focus on blockchain services and cross-border payments as Stablecoin progresses.
Magazine: The risks in the US are ‘front run’ in Bitcoin Reserve by other countries – Samson Mow
