The Financial Stability Board warns that dollar-denominated stablecoins exacerbate financial risks in emerging economies.

PANews reported on March 24 that the Financial Stability Board (FSB), in its 2025 annual report, stated that cross-border circulation of dollar-denominated stablecoins poses a "more acute" financial stability and macroeconomic risk to emerging market and developing economies. The FSB noted that such stablecoins could lead to the substitution of local currencies, weaken the use of domestic payment systems, reduce the effectiveness of monetary policy, increase fiscal pressures, and be used to circumvent capital flow management measures. The FSB stated that it is necessary to continuously assess the development of the stablecoin sector, focusing on its vulnerabilities in liquidity, operational risks, and linkages with traditional financial systems, and to promote the implementation of the global stablecoin regulatory framework introduced in 2023, which still has implementation gaps.