A new report warns that the adoption of global stablecoins in emerging markets and developing economies poses significant financial risks and regulatory challenges.
The adoption of global stablecoins (GSCs) presents heightened risks and regulatory challenges in emerging markets and developing economies (EMDEs), according to a new report from the Financial Stability Board (FSB).
On July 23, the FSB released a report highlighting the financial instability and macro-financial risks associated with the increasing use of foreign currency-pegged stablecoins in these regions.
The adoption of GSCs, particularly those pegged to foreign currencies, is surging in EMDEs due to factors such as limited access to traditional banking, high remittance flows and local currency volatility.
