{"id":89328,"date":"2025-09-27T14:01:59","date_gmt":"2025-09-27T11:01:59","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=89328"},"modified":"2025-09-27T14:05:12","modified_gmt":"2025-09-27T11:05:12","slug":"moodys-highlights-risks-of-stablecoin-boom","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/moodys-highlights-risks-of-stablecoin-boom\/","title":{"rendered":"Moody\u2019s Highlights Risks of Stablecoin Boom"},"content":{"rendered":"

The rapid expansion of cryptocurrency use, including stablecoins<\/a>, in developing countries poses risks to monetary sovereignty and financial stability, according to a report<\/a> by the rating agency Moody\u2019s.<\/p>\n

The spread of fiat-pegged coins could weaken central banks’ control over interest rates and exchange rate stability, the agency’s experts warned, dubbing this trend as \u201ccryptocurrencisation.\u201d<\/p>\n

In this context, banks may face a reduction in deposits if private depositors transfer savings into \u201cstablecoins or crypto wallets.\u201d<\/p>\n

Moody\u2019s noted that fragmented regulation remains a major issue in this area. Less than a third of countries have implemented comprehensive rules for digital assets.<\/p>\n

Significant progress has been made by the world’s largest economies, the US and the EU, which have respectively adopted the GENIUS Act<\/a> and the MiCA<\/a> regulation. In these regions, cryptocurrencies are primarily viewed as investment tools.<\/p>\n

In developing countries, digital assets are widely used to enhance financial service accessibility, for remittances, mobile payments, and as a hedge against inflation<\/a>.<\/p>\n

\"Sector_In-Depth-Sovereigns-Global-Digital-25Sep2025-PBC_1456511
The most common uses of cryptocurrencies by country and the associated risks. Source: Moody\u2019s.<\/figcaption><\/figure>\n
\n

\u201cThe lack of a comprehensive regulatory framework increases exposure to financial instability, especially in jurisdictions with rapid growth and high levels of digital currency penetration,\u201d the agency’s experts warned.<\/p>\n<\/blockquote>\n

The expansion of stablecoin use, despite their supposed safety, carries systemic vulnerabilities, Moody\u2019s emphasized.<\/p>\n

\n

\u201cInsufficient oversight could trigger a reserve run and force governments to undertake costly rescue measures in the event of a peg collapse,\u201d the report’s authors believe.<\/p>\n<\/blockquote>\n

Earlier, JPMorgan concluded that the anticipated wave of stablecoin launches in the US could turn<\/a> into a zero-sum competition.<\/p>\n","protected":false},"excerpt":{"rendered":"

The rapid expansion of cryptocurrency use, including stablecoins, in developing countries poses risks to monetary sovereignty and financial stability, according to a report by the rating agency Moody\u2019s.<\/p>\n","protected":false},"author":1,"featured_media":89329,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Moody\u2019s warns of stablecoin risks to financial stability in developing countries.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1825,1252,807],"class_list":["post-89328","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-moodys","tag-reports","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"156","promo_type":"1","layout_type":"1","short_excerpt":"Moody\u2019s warns of stablecoin risks to financial stability in developing countries.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=89328"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89328\/revisions"}],"predecessor-version":[{"id":89330,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89328\/revisions\/89330"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/89329"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=89328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=89328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=89328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}