Moody's: The Crypto Wave Driven by Stablecoins Poses Serious Challenges to Monetary Sovereignty and Financial Stability in Emerging Markets

ChainCatcher news, according to Gelonghui, international credit rating agency Moody's recently warned that the crypto wave driven by stablecoins is posing an increasingly severe challenge to the monetary sovereignty and financial stability of emerging markets. The report points out that as stablecoins and other cryptocurrencies accelerate their global adoption, emerging markets face the risk of weakened monetary sovereignty. The widespread penetration of stablecoins anchored to fiat currencies such as the US dollar may erode central banks' traditional ability to regulate interest rates and exchange rates. Moody's specifically emphasized that if individuals transfer bank deposits to stablecoins or crypto wallets, the banking system may face deposit outflows, which would not only affect liquidity but could also undermine overall financial stability.

Data shows that in 2024, the number of global digital asset holders has reached approximately 562 millions, a year-on-year increase of 33%. Among them, emerging markets such as Latin America, Southeast Asia, and Africa have seen the fastest growth, mainly driven by the convenience of cross-border remittances, demand for mobile payments, and the need to hedge against local currency inflation. This stands in sharp contrast to developed economies, where demand is driven by clear regulations and investment channels. Moody's warns that if regulatory gaps are not promptly addressed, the crypto wave may further amplify monetary and financial security risks in emerging markets.