Moody's: The wave of cryptoization driven by stablecoins poses a severe challenge to currency sovereignty and financial stability in emerging markets

ChainCatcher news, according to Gelonghui reports, international credit rating agency Moody's recently warned that the crypto wave driven by stablecoins poses an increasingly severe challenge to monetary sovereignty and financial stability in emerging markets. The report points out that as cryptocurrencies like stablecoins accelerate their global adoption, emerging markets face the risk of weakened monetary sovereignty, with stablecoins pegged to fiat currencies like the US dollar widely penetrating the market, potentially eroding central banks' traditional ability to control interest rates and exchange rates. Moody's particularly emphasizes that if individuals shift their 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 million, a year-on-year increase of 33%, with the fastest growth in emerging markets such as Latin America, Southeast Asia, and Africa. The main driving forces are the convenience of cross-border remittances, the demand for mobile payments, and the practical considerations of hedging against local currency inflation, contrasting sharply with the demand in developed economies driven by clear regulations and investment channels. Moody's warns that if regulatory gaps are not filled in a timely manner, the crypto wave may further amplify the monetary and financial security risks in emerging markets.