FSB Warns Dollar Stablecoins Could Heighten Emerging-Market Risks

The Financial Stability Board said dollar-denominated stablecoins that can circulate across borders are particularly significant for emerging markets and developing economies. They could accelerate currency substitution, crowd out local payment instruments, and weaken both the transmission of central bank monetary policy and financial autonomy.

In its 2025 annual report, the FSB warned that dollar stablecoins could amplify financial stability and macroeconomic risks. The report did not estimate a specific loss amount, but called on regulators worldwide to continue reviewing their liquidity and operational risks and to monitor the deepening links between stablecoins and banks, payment systems and other parts of the financial system.