As stablecoin and cryptocurrency adoption speed up worldwide, rising markets face mounting dangers to financial sovereignty and monetary stability, in line with a brand new report from Moody’s Rankings.
The credit standing service warned that widespread use of stablecoins — tokens pegged 1:1 with one other asset, normally a fiat forex just like the US greenback — may weaken central banks’ management over rates of interest and alternate price stability, a development known as “cryptoization.”
Banks may additionally “face deposit erosion if people shift financial savings from home financial institution deposits into stablecoins or crypto wallets,” the report mentioned.
Crypto adoption dangers in several markets. Supply: Moody’s
Moody’s mentioned digital asset rules all over the world stay fragmented, with fewer than one-third of nations implementing complete guidelines, exposing many economies to volatility and systemic shocks.
Whereas regulatory readability and enhanced funding channels typically drive adoption in superior economies, Moody’s mentioned the quickest development is in rising markets — notably in Latin America, Southeast Asia and Africa — the place utilization stems from remittances, cellular funds and inflation hedging.
“[…] the speedy development of stablecoins, regardless of their perceived security, introduces systemic vulnerabilities: inadequate oversight may set off runs on reserves and drive expensive authorities bailouts if pegs collapse,” Moody’s mentioned.
The company mentioned that the divergence highlights not solely the potential for monetary inclusion but additionally the mounting dangers of monetary instability if oversight fails to maintain tempo.
In 2024, world possession of digital belongings reached an estimated 562 million individuals, up 33% from the earlier 12 months.
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Laws in Europe, the US and China speed up
Although a lot of the world nonetheless lacks clear guidelines round cryptocurrency and stablecoins, Europe, america and even China have been making progress over the past 12 months.
On Dec. 30, 2024, after a phased rollout, the remaining provisions of the EU’s Markets in Crypto-Property (MiCA) regime have been applied. MiCA is the bloc’s crypto rulebook, standardizing licensing for service suppliers and setting reserve and disclosure necessities for stablecoins.
Within the US, the GENIUS Act turned regulation on July 18, establishing enforceable requirements for issuing and backing stablecoins.
With Europe and america rolling out stablecoin regulation, China seems to be altering course.
After banning crypto buying and selling and mining in 2021, Beijing expanded its pilots for its digital yuan and, in line with latest experiences in August 2025, is weighing tightly managed yuan-backed stablecoins.
On Thursday, the Individuals’s Financial institution of China (PBOC) opened a brand new operations heart in Shanghai for the digital yuan, aiming to concentrate on blockchain providers and cross-border funds as stablecoin growth continues.
Journal: US dangers being ‘entrance run’ on Bitcoin reserve by different nations — Samson Mow
