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Author: Li Xiaoyin, Wall Street News
Rating agency Moody’s warned that the wave of “cryptoization” driven by stablecoins is posing an increasingly severe challenge to emerging markets’ monetary sovereignty and financial stability.
Recently, Moody’s stated in its latest report,Emerging markets face the risk of weakening of currency sovereignty as adoption of cryptocurrencies such as stablecoins accelerate globally.Under this trend of “cryptography”, stablecoins anchored by fiat currencies such as the US dollar are widely used, thus weakening the central bank’s ability to control interest rates and exchange rates.
The report clearly states that if individuals turn their savings from domestic bank deposits to stablecoins or crypto wallets, the banking system may face the risk of “deposit loss”.Moody’s said that this capital outflow not only affects the liquidity of banks, but also poses a potential threat to overall financial stability.
Data shows that in 2024, the number of global digital asset owners has reached about 562 million, an increase of 33% from the previous year.Moody’s stressed that although in developed economies, the popularity of crypto assets is mostly driven by clear supervision and improved investment channels,In emerging markets such as Latin America, Southeast Asia and Africa, it has the fastest growth rate, mainly driven by demand for remittances, mobile payments and inflation hedging..
“Crypto” risk intensifies
Moody’s believes that the core risk of “cryptography” lies in its erosion of a country’s monetary policy independence and financial system stability.
The central bank’s ability to manage the economy by adjusting interest rates will be weakened, the report said.At the same time, if the US dollar stablecoin becomes the mainstream trading medium, it will directly impact the exchange rate stability of the domestic currency.
In addition, Moody’s warned thatStablecoins themselves also have systemic risks.
The report notes that although stablecoins are considered relatively safe, their rapid growth has also introduced systemic loopholes: Inadequate regulation may trigger a run on reserves, which may force the government to take costly bailout measures once dean occurs.
Growth imbalance and regulatory divide
The popularity of crypto assets globally shows significant geographical imbalances, while lagging regulatory efforts have exacerbated the risks faced by emerging markets.
Moody’s stressed in the report,The current regulatory landscape is extremely fragmented.Data shows that less than one-third of the world’s countries have implemented comprehensive digital asset rules, which has exposed many economies directly to market volatility and systemic shocks.
This regulatory gap contrasts sharply with the differences in growth patterns.Crypto adoption in developed markets focuses more on investment, while emerging markets are more out of actual demand, such as cross-border remittances and hedging the inflation risks of their own currencies.
Moody’s believes that this differentiation not only demonstrates the potential of digital assets in inclusive finance, but also highlights the accumulation of risks of financial instability as regulation fails to keep up.
