Stablecoins boom: Moody's alert on a threat to emerging economies

What if the stablecoins, supposed to embody stability, became a threat to global financial balance? In a recent report, Moody's Ratings warns against their growing adoption, especially in emerging countries. These assets, now used far beyond traditional crypto circles, could weaken control of central banks, erode bank deposits and cause systemic shocks.

Increasing pressure on monetary sovereignty

In a report published on September 25, Moody's Ratings is concerned about the growing impact of stablecoins on emerging savings, while Canada Banque pleads for their rapid regulations.

The rating agency stresses that the rapid dissemination of these assets, often backed by the US dollar, could affect the ability of central banks to pilot their economic policies.

“The widespread use of stablecoins could weaken the control of central banks on interest rates and the stability of exchange rates”,, warn Moody's. This dynamic, which the agency describes as “Cryptochusation”is particularly worrying in regions where local currency is already under pressure and where financial institutions lack solidity.

Moody's identifies several possible consequences of a massive adoption of stablecoins in unregulated or structurally fragile economies:

• A loss of influence of central banks: local monetary authorities could lose their ability to effectively manage monetary offer, especially if stablecoins gradually replace local currencies in daily transactions;

• Erosion of traditional bank deposits: according to Moody's, “Banks could face a drop -down leak if individuals move their savings to stablecoins or crypto wallets”;

• The increase in systemic risk: in countries without adequate supervision, a loss of confidence in the reserves of a stablecoin could cause massive withdrawals, or even require costly public remedies if the anchoring of the token were to yield;

• An adoption motivated by the need, and not speculation: in several countries in Africa, Latin America and Southeast Asia, stablecoins are used as a solution to inflation, the volatility of local currencies or high costs of international transfers.

The agency concludes that this transition, although sometimes perceived as a lever for financial inclusion, could actually accentuate the fragility of already vulnerable economic systems, by moving monetary trust towards private or decentralized entities, often escaping any public surveillance.

Fragmented regulations, amplified risks

Moody's is not content to draw up an economic observation. The agency also reveals the regulatory flaws that aggravate the situation. Today, less than a third of countries around the world have a complete regulatory framework that supervises these assets.

This absence of clear and harmonized standards exposes the economies, especially the most vulnerable, to unforeseen shocks. “Despite their perception as safe active ingredients, the stablecoins introduce systemic vulnerabilities: insufficient supervision could trigger panics on reserves and force expensive remedies if the anchors collapse”underlines the report.

Conversely, certain economic powers are starting to supervise the sector. The European Union finalized, on December 30, 2024, the implementation of the Mica regime, an ambitious regulation which imposed strict standards in terms of reserves and transparency for stablecoins issuers.

In the United States, the Genius Act established a restrictive legal framework for the issue and management of these assets. Even China, after having banned trading and cryptos mining in 2021, seems to influence its position. Beijing is now considering stablecoins backed by Yuan, while accelerating the development of its digital currency via an operational center open in Shanghai.

This divergence in the regulatory approach draws a global two -speed landscape. On the one hand, structured jurisdictions that frame the risks linked to stablecoins. On the other, gray areas where these assets develop without adequate supervision. Ultimately, this imbalance could accentuate economic and geopolitical inequalities, giving the regulated nations a structural advantage, while the countries left to themselves could become dependent on monetary infrastructure which they no longer control.