FSB: “Dollar stablecoins pose financial stability risks for emerging markets”

A warning has emerged that dollar-pegged stablecoins could create structural risks for financial systems in emerging markets. In markets, concerns are growing over the impact that the spread of stablecoins could have on monetary policy and capital flows.

According to Cointelegraph, a virtual asset (cryptocurrency) industry outlet, on the 24th the Financial Stability Board (FSB) said in its 2025 annual report that foreign-currency-denominated stablecoins could become a risk factor for financial stability and macroeconomic conditions in emerging and developing economies.

The report, in particular, assessed that dollar-based stablecoins “could have a more serious impact on financial stability.” It explained that their structure—circulating across multiple countries—could heighten vulnerability to external shocks.

The FSB cited key risks including ▲currency substitution ▲reduced use of domestic payment systems ▲weakened effectiveness of monetary policy ▲increased fiscal burdens ▲and the potential to circumvent capital movement controls.

It also stressed that, as linkages between stablecoins and the traditional financial system expand, ongoing monitoring of vulnerabilities such as liquidity and operational risks is necessary.

However, it also noted that stablecoin use in the real economy remains limited so far. The report said, “Despite recent growth, crypto-assets and stablecoins are not being widely used in financial services that support the real economy.”