FSB Warns of Liquidity and Dollarisation Risks from Stablecoins

FSB highlights stablecoin risks despite limited crypto impact in 2025.

The Financial Stability Board (FSB) of the G20 has highlighted increasing risks associated with stablecoins, despite the limited impact of the crypto market on the financial system in 2025.

📢 We have just published our Annual Report, looking at key challenges and achievements in 2025, presented in a fresh, new format. Take a look: https://t.co/gfPL03B59k pic.twitter.com/dAQe5pDXap

— The FSB (@FinStbBoard) March 24, 2026

According to the FSB, crypto assets exhibited significant volatility in 2025. However, their impact on global finance remained minimal, despite growing ties with traditional markets.

At the same time, there was an increase in the capitalisation and transaction volume of “stablecoins.” Yet, their use in the real economy—such as in payments—remains limited.

Main Risks of Stablecoins

Despite their potential advantages, stablecoins pose several vulnerabilities that require monitoring:

• liquidity risks and reserve stability;
• operational risks of infrastructure;
• increased interconnections with the traditional financial system.

Experts from the advisory body paid particular attention to global tokens that operate across multiple jurisdictions. Managing reserves in different countries can create additional complexities and increase systemic risks.

Pressure on Emerging Economies

The FSB noted that stablecoins denominated in foreign currencies pose particular risks for developing countries.

Possible consequences include:

• displacement of national currencies and payment systems;
• reduced effectiveness of monetary policy;
• pressure on budgetary resources;
• circumvention of capital flow controls.

Regulatory Challenges

The FSB pointed to significant gaps and inconsistencies in the regulation of crypto assets and stablecoins. As different countries develop their own approaches, this creates additional risks for financial stability.

A review conducted in 2025 of the implementation of international recommendations showed that while many jurisdictions have advanced in regulating the crypto market, few have completed the development of regimes for global “stablecoins.”

Uneven implementation of rules creates opportunities for regulatory arbitrage and complicates oversight of the global market. Another issue remains the weak coordination between countries—cross-border interaction mechanisms remain fragmented and insufficient.

Experts also pointed to a lack of quality data on the crypto market. Reliance on commercial sources and fragmented information makes it difficult to fully assess the scale of risks and vulnerabilities.

Back in March, the SEC excluded stablecoins from the category of securities in its new token taxonomy.